Cumulus Media Inc. Announces Acquisition of Two Stations in KC
October 2, 2003
Cumulus Media Inc.
Cumulus Media Inc. (NASDAQ: CMLS) today announced it has signed an Asset Purchase Agreement to purchase KCHZ-FM and KMJK-FM, serving Kansas City, MO (metro rank 29), from Syncom Radio Corporation and Allur-Kansas City, Inc. The purchase price for the stations is $25.0 million and is payable, at the option of Cumulus, entirely in cash or shares of Cumulus Media Inc. Class A common stock. The number of shares that would be delivered at closing will be determined based upon an average closing price of the stock for a period prior to closing. The closing of this transaction is targeted to occur by the fourth quarter of 2003 or the first quarter of 2004.
Cumulus' Chairman and CEO, Lew Dickey, commented, "We are very pleased to announce Cumulus' entry into Kansas City, MO through the acquisition of KCHZ and KMJK. Both stations are quality assets with considerable upside potential in terms of future operating results."
Cumulus Media Inc. is the second-largest radio company in the United States based on station count. Giving effect to the completion of all announced pending acquisitions and divestitures, Cumulus Media will own and operate 272 radio stations in 56 mid-size, U.S. media markets. The company's headquarters are in Atlanta, Georgia, and its web site is www.cumulus.com.
Statements in this release may constitute "forward-looking" statements, which are statements that relate to Cumulus Media Inc.'s future plans, revenues, station operating income, earnings, objectives, expectations, performance, and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors. These factors include competition within the radio broadcasting industry, advertising demand in our markets, the possibility that advertisers may cancel or postpone schedules in response to political events, competition for audience share, our success in executing and integrating acquisitions, our ability to generate sufficient cash flow to meet our debt-service obligations and finance operations, and other risk factors described from time to time in Cumulus Media Inc.'s filings with the Securities and Exchange Commission, including Cumulus Media Inc.'s Form 10-K for the year ended December 31, 2002. Cumulus Media Inc. assumes no responsibility to update the forward-looking statements contained in this release as a result of new information, future events or otherwise.