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Beasley to tune in with WDMK deal
Posted on Tuesday, 11 June 2019 11:20
Beasley Broadcast Group has agreed to buy US-based radio station WDMK-FM from Urban One for USD 13.50 million in cash.
Subject to approval from the Federal Communication Commission and other customary closing conditions, the deal is slated to complete during the fourth quarter of 2019.
The purchase, which also includes three translators based in Detroit, Michigan, will be funded via borrowings from a credit facility and cash generated from operations.
Caroline Beasley, chief executive of Beasley, said: “The accretive acquisition of WDMK significantly enhances our revenue and competitive position in Detroit.”
The target was purchased in 1998 by Urban, a US-based media conglomerate which claims to be the largest African-American owned television network and distributor of digital urban content.
As a result of the deal, the purchaser will add WDMK to its existing radio stations in Detroit, which is billed as the thirteenth-largest designated marketing area in the country.
Beasley added: “The addition of WDMK will mark further progress toward our goal of capturing 30.0 per cent revenue share in each of our markets while delivering valuable synergies and the potential for segment operating income margin improvement.”
The deal is also expected to increase the company’s free cash flow with immediate effect.
Founded in 1961, the acquiror owns and operates 64 FM and AM stations across 15 large-to-mid-size markets in the US.
Beasley has around 19.00 million listeners via smartphones, tablets and other media, and includes radio brands such as Love860, Country 103.7 and ESPN Southwest Florida.
The group posted revenue of USD 57.69 million for the quarter ended 31st March 2019, up from USD 55.15 million in the corresponding period of 2018.
Zephyr, the M&A database published by Bureau Van Dijk, shows there have been 128 deals targeting radio and television broadcasting operators announced worldwide since the beginning of 2019.
The top five companies were US-based, with the largest involving Diamond Sports Group agreeing to acquire Fox Sports Net for USD 9.60 billion.
Other targets featured in the sector this year include Nexstar Media Group, Reliance Broadcast Network and Persidera.
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