Reuters cited sources who told Wall Street Journal that Cumulus has planned on buying our content producer Dial Global for USD260 million. The planned buyout was a bid to strengthen its position as a big player in the radio broadcasting industry. Companies who currently dominate the radio broadcasting industry are Clear Channel Communications Inc's CCMOL.UL Premiere Networks and ESPN Radio owned by Walt Disney Co.. Cumulus would be aiming to produce original, branded entertainment for radio.
Dial Global is based in New York and is known in radio as one of the largest producers in producing and distributing talk shows, sporting events and other radio productions. The producer has done national coverage for the US Open and the National Football League.
Although Reuters was unable to reach both Cumulus and Dual Global for comment outside business hours, the deal was said to be finalized before the year ends.
Cumulus would resort to an asset sale of its 53 radio stations across United States to fund its purchase of Dial Global. The radio stations would be sold to Townsquare Media LLC for a reported USD238 million in cash.
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