Cumulus Media Inc. (NASDAQ: CMLS) announced today that it has entered
into an agreement with the investor group led by Lew Dickey, the Company’s
Chairman, President and CEO, and an affiliate of Merrill Lynch Global
Private Equity, to terminate the merger agreement entered into between
the Company and the investor group on July 23, 2007.
The members of the investor group informed the Company that, after
exploring possible alternatives, they were unable to agree on terms on
which they could proceed with the transaction.
As a result of the termination of the merger agreement, and in
accordance with its terms, the investor group has agreed to promptly pay
the Company a termination fee of $15 million, and the terms of the
previously announced amendment to the Company’s
existing credit agreement will not take effect.
Lew Dickey, Chairman, President and CEO of the Company, commented, “Our
business remains fundamentally sound and we intend to continue to
operate it aggressively and explore opportunities to create and deliver
value for our shareholders.”
The Company also announced that its board of directors intends to
explore, in the very near term, the possible implementation of a new
stock repurchase plan that would provide liquidity opportunities to
stockholders. There can be no assurance, however, that the Company will
implement such a plan.
Cumulus Media Inc. is the second-largest radio company in the United
States based on station count. Giving effect to the completion of all
pending acquisitions, Cumulus, directly and through its investment in
Cumulus Media Partners, will own or operate 339 radio stations in 65
U.S. media markets. Cumulus’s headquarters are
in Atlanta, Georgia, and its web site is www.cumulus.com.
Cumulus Media Inc. shares are traded on the NASDAQ Global Select Market
under the symbol CMLS.