In an investor presentation Wednesday, Beasley Media Group detailed how it plans to save nearly $8 million in cost synergies by detailing where those savings will come from as a result of its purchase of Greater Media. The company says the $7.9 million in annual cost savings will “be driven primarily by headcount as well as compensation/contract expense reductions.” Here’s how Beasley plans to make those reductions in each of the Greater Media markets.
In Boston, Beasley says there will be $2.4 million in “annual cost synergies.” In Charlotte, $1 million, Detroit $1.2 ,million, New Jersey $1.4 million and Philadelphia $1.9 million. Phase one of the cost reductions will be made at the corporate level by eliminating executive management and duplicative corporate departments and cutting discretionary travel and entertainment expenses of the executive staff ($3.7 million). The Grapevine company newsletter will also be eliminated along with consulting fees and board of director fees ($1 million)
Phase two will come at the station level where there will be a reduction of group benefit costs ($1.5 million) and the elimination of duplicative research and consulting fees ($900,000). Also, the staff will be reconfigured in New Jersey.
The expense reductions are expected to be phased in after the deal closes. Beasley announced it was purchasing Greater Media for $240 million back in July. The deal is expected to close at the end of the year.
Read the entire presentation HERE
