Cox Enterprises to Sell Radio Portfolio, CoxReps and Gamut
|RADIO ONLINE | Wednesday, June 26, 2019|
Cox Enterprises has reached an agreement to sell Cox Media Group's radio station portfolio as well as its CoxReps and Gamut national advertising businesses to a new broadcasting company that is substantially owned by private equity funds managed by affiliates of Apollo Global Management LLC. The transaction will expand the new company, which purchased Cox Media Group's broadcast television group and the company's radio, newspaper and television properties in Ohio in February.
Cox Enterprises will maintain a minority stake in the new company, which will maintain the name "Cox Media Group" and will be headquartered in Atlanta. CMG operates more than 60 radio stations across 11 markets, including Athens, Atlanta, Houston, Jacksonville, Long Island, Miami, Orlando, San Antonio, Tampa and Tulsa.
CoxReps is the country's largest national television rep company for local broadcast television. Gamut offers customized and localized digital advertising and OTT solutions to clients on a national scale.
The buyer plans to maintain the operating structure of Cox Media Group's television, radio, CoxReps and Gamut businesses and leverage these assets to continue building a national media company with station properties in several markets across the country.
"We are happy our Cox Radio and national ad platforms will continue to be operated with our television group," said Cox Enterprises President/CEO Alex Taylor. "Keeping these media businesses together gives us even more confidence in the future success of the new company. We have spent many years fostering a culture of collaboration and innovation across these businesses and are pleased to see that work will continue."
"We are thrilled to acquire the Cox Radio station portfolio, CoxReps and Gamut and combine them with the Cox Television business to form a new media company focused on quality local broadcasting," added Apollo Chairman and Senior Partner David Sambur. "Cox has deep roots in the media industry and has stood for the highest quality in local journalism for the past 120 years. As we shepherd these businesses into the future, we are committed to investing in high quality programming and fostering innovation in local media."
The transaction is subject to customary regulatory review and closing conditions. To comply with FCC ownership limits, the buyer intends to divest two FM stations, one each in Orlando and Tampa.
Eversheds Sutherland LLP and Covington & Burling LLP served as the legal advisors to Cox Enterprises in the transaction. RBC Capital Markets LLC, Guggenheim Securities, LLC and LionTree Advisors, LLC served as the financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Cooley LLP served as the legal advisors to the buyer in this transaction.
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