Lew Dickey started up Cumulus Media (NASDAQ: CMLS) back in 1997. Before this, he founded Stratford Research in 1985, a top research firm focused on the radio and television markets. He even wrote a book: The Franchise - Building Radio Brands.But his biggest deal was Cumulus, where he arranged more than 130 acquisitions to build a powerhouse in radio.
Yet, with private equity dollars flowing, Dickey has now decided to do a buyout . He has partnered with Merrill Lynch Global Private Equity (NYSE: MER) for the $1.3 billion deal.
The radio sector has seen a lot of dealmaking. For example, there's the $19.5 billion buyout of Clear Channel Communications (NYSE: CCU).
While the internet may pose some threat, investors are still convinced of the future of traditional radio. And the cash flows are fairly predictable (making it easier to get debt financing).
On the news of the deal, Cumulus' shares spiked 32.74% to $11.11. The buyout offer is $11.75.
If you want to check out some more recent M&A transactions, click here.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
