Cumulus is selling KLOS-FM in L.A. to Meruelo Media for $43 million in cash. Cumulus has also entered into a swap agreement with Connoisseur Media whereby Cumulus will obtain four stations in and around Allentown, PA, in exchange for two Cumulus stations in Southern Connecticut.
Cumulus CEO Mary Berner said, “These transactions are part of the continued execution of our portfolio optimization strategy. Both transactions are accretive, and the sale of KLOS-FM to Meruelo Media at an attractive multiple allows us to generate substantial cash, which can be used to further pay down debt and invest in high-potential business opportunities. The Connoisseur Media swap significantly strengthens our presence in Allentown and the Lehigh Valley.”
Meruelo will begin programming KLOS-FM under a Local Marketing Agreement on April 16, 2019.
Cumulus will receive WODE-FM, WWYY-FM, WEEX-AM, and WTKZ-AM in and around Allentown, and Connoisseur will receive WEBE-FM in Westport, CT, and WICC-AM in Bridgeport, CT. The parties will begin programming each other’s respective stations under Local Marketing Agreements on May 1, 2019.
Moelis & Company LLC represented Cumulus as financial advisor in the sale of KLOS-FM to Meruelo Media. MVP Capital represented Cumulus as financial advisor in the swap with Connoisseur Media. Jones Day represented Cumulus as legal counsel on both transactions.
Cumulus expects to complete both transactions in the third quarter of 2019.