As the FCC mulls over the deregulation of ownership caps, Cox Media Group could be one of the first major players to shift hands in a new wave of consolidation. The owner of America’s seventh-highest revenue radio company is reportedly exploring a sale.
As reported by Bloomberg, Apollo Global Management is exploring a potential sale of Cox Media Group and its portfolio of broadcast radio and television stations. The alternative asset manager has retained Moelis & Co. to evaluate buyer interest, according to individuals familiar with the matter.
Cox Media Group owns 50 radio stations across 10 markets and 15 TV brands in nine markets.
Apollo, which acquired the media group in 2019 from Cox Enterprises and Northwest Broadcasting, is reportedly seeking a buyer that would purchase the entire operation rather than splitting the radio and TV assets among multiple parties. Sources say the transaction could value Cox Media Group at around $4 billion, though no final decision has been made, and the process may not lead to a sale.
There purportedly two interested parties at this time: Nexstar Media Group and Gray Media. Both companies would presumably be primarily interested in CMG’s television assets, due to their widespread presence in that market. Nexstar’s lone radio station is Chicago’s WGN-AM, while Gray only operates WGEM on the other side of Illinois in Quincy.
This has led some to believe that should the entire CMG broadcast portfolio be sold as desired, the radio clusters could be spun off by the buyer.
The potential divestiture comes as FCC Chairman Brendan Carr launches the “Delete, Delete, Delete” initiative, aiming to eliminate outdated or unnecessary regulations within the communications industry. This effort is seeking public input to identify rules that may hinder technological advancements, competition, or investment in communications infrastructure.
Industry stakeholders and representatives, including the NAB, hope this deregulatory push could bring forth long-sought ownership rule changes. In February, the NAB launched a public awareness campaign advocating for the relaxation of ownership caps on radio and television broadcasters.
I’ve got my fingers crossed that Hearst Media Group might acquire Cox Media Group, considering that Hearst likes decently run stations. They’d have to address overlapping conflicts in Orlando, Pittsburgh, and Boston, and I’d anticipate Hearst keeping WTAE and WCVB, and maybe keeping WESH-WKCF. Hearst owning Fox affiliates in Jacksonville and Eugene would probably be a short-lived gig.
If ownership caps are loosened, this could mark a major turning point for the broadcast industry. It’ll be fascinating to see how a potential sale of Cox Media Group reshapes the landscape—especially for its radio