Cumulus Media Expands Montgomery, Alabama Radio Group; Deal Includes Option to Buy Stations.
MILWAUKEE--(BUSINESS WIRE)--Aug. 18, 1998--Cumulus Media Inc. (NASDAQ NASDAQ
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CMLS Contractor Maintenance & Logistics Support ), the nation's fourth largest radio broadcaster, today announced that it will expand its operations in Montgomery, Alabama Montgomery is the capital and second most populous city of the U.S. state of Alabama and the county seat of Montgomery County. Montgomery is notable for its historic involvement during the Civil War, for being the first capital of the Confederacy, and for being a primary site in from four radio stations to seven.
Cumulus cumulus: see cloud. has entered into a Local Marketing Agreement to operate radio stations WXFX(FM), WJCC WJCC World Junior Curling Championships (FM) and WHHY(AM), all serving the Montgomery, Alabama radio market. Cumulus also obtained an option to acquire the stations from McDonald Media Group, Inc., an Alabama corporation that is the owner and licensee of the stations. Financial terms of the agreements were not disclosed.
Cumulus currently owns radio stations WLWI(FM), WMXS(FM), WMSP WMSP Washington Motorcycle Safety Program
WMSP Windows Media Streaming Protocol (AM) and WNZZ(AM) in Montgomery. Together with the new stations, the Company will operate 4 FM and 3 AM station group in the market.
"We're delighted that we're able to round out our existing radio market presence with a full complement of FM stations," stated Lew Dickey, Executive Vice Chairman of Cumulus Media Inc. "Montgomery fits the Cumulus target market profile perfectly."
Mr. Dickey added, "At an Arbitron rank of 143rd in the country, the Montgomery radio market is substantial, with excellent cash flow growth potential. As a state capital and regional commercial center, it has a stable employment base. Plus, it's located within a few hours of our Tallahassee, Columbus, and Albany stations, allowing national and regional advertisers to take further advantage of our presence in the Southeast, and our other regional clusters, through group buys of advertising time."
Cumulus Media Inc. is a radio broadcasting company focused on the acquisition, operation, and development of radio stations in mid-sized and smaller radio markets in the U.S. The Company currently owns or operates 159 radio stations in 32 U.S. radio markets. Including all stations owned and pending, Cumulus controls 179 stations in 34 markets making it the nation's 4th largest radio broadcaster in terms of stations. Cumulus recently completed an initial public offering and the sale of public preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders.
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and bonds for total gross proceeds of $402 million. Richard Weening is Executive Chairman of Cumulus. William Bungeroth is President of Cumulus' operating subsidiary, Cumulus Broadcasting Inc.
CONTACT: Cumulus Media Inc. Linda Fischer, 414-615-2800 URL: www.cumulusmedia.com