Cumulus Sells Six to EMF for $103M, Swaps with Entercom
|RADIO ONLINE | Wednesday, February 13, 2019|
Cumulus Media has agreed to sell six radio outlets to Educational Media Foundation (EMF) for $103.5 million in cash. Included in the deal are WYAY-FM/Atlanta, WPLJ-FM/New York, KFFG-FM/San Francisco, WZAT-FM/Savannah GA, WXTL-FM/Syracuse and WRQX-FM/Washington, DC. Cumulus also announced that it would swap WNSH-FM/New York and WMAS-FM & WHLL-AM/Springfield MA in exchange for Entercom's WNTR-FM, WXNT-AM and WZPL-FM/Indianapolis.
Under the terms of the agreement with EMF, the Christian Radio Broadcaster will acquire all transmission equipment and assume all tower leases associated with the stations which collectively contribute approximately $5 to $7 million of EBITDA to Cumulus annually.
In connection with the swap agreements, each party will commence a local marketing agreement (LMA) to program the other party's stations beginning on March 1 before approvals and timing to close. Cumulus expects to complete both transactions during the second quarter of 2019.
Cumulus Media President/CEO Mary G. Berner said, "These transactions are consistent with our portfolio optimization strategy and both deals are accretive. The Entercom swap significantly bolsters our competitive position in Indianapolis and the EMF transaction generates substantial cash for debt repayment and investment in other business opportunities."
"We are thrilled to add these stations to the K-LOVE network and for the opportunity to continue to bring people closer to Jesus," said Alan Mason, EMF President and Interim CEO. "Our mission is to create compelling media that inspires and encourages listeners to have a meaningful relationship with Christ. These are legendary stations that will enable us to enter new markets in Washington DC, Atlanta, Savannah and Syracuse and expand our footprint in New York."
"We are excited to add NASH FM 94.7 to our outstanding lineup in New York City and to add WMAS and WHLL to our cluster in Springfield. These additions will enhance our ability to serve our listeners, partners and communities," said Entercom President/CEO David Field. "We are saddened to part ways with our colleagues in Indianapolis, but know that they will be in great hands."