Cumulus Media to be Bought Out!

Just announced - Cumulus Media, the 2nd largest radio group on the U.S. will be bought out for $1.3 BILLION (including debt) by an investor group led by Chief Executive Lewis Dickey and an affiliate of Merrill Lynch Global Private Equity.

Cumulus owns and/or operates 344 stations in the U.S. The buyout comes at a time when the future of traditional media is uncertain as radio stations are starting to compete with digital media outlets.

The transaction is scheduled to be complete by early 2008 and will include a 40% share price premium over what the stock was trading at on Friday. The board has approved the transaction and has encouraged shareholders to do the same. The nation's largest radio company, Clear Channel Communications, agreed earlier this year to be taken private in a $19.6 billion buyout.