Gores Takes Over Westwood One In Restructure
Financially troubled radio network Westwood One is restructuring its $241 million debt. As part of the move, The Gores Group will acquire control of Westwood by increasing its equity stake in the company to 72.5%.
"The refinancing is an essential part of our turnaround plan," says Rod Sherwood, president of Westwood. Sherwood took over the top spot in late October. He is the former CFO of Gores, a private-equity firm based in Los Angeles. Since Sherwood's arrival, Westwood has reorganized its executive management and sales organizations, and is in the process of consolidating its Metro Traffic division.
Westood's new syndicated program "The Fred Thompson Show," which replaces Bill O'Reilly's show, debuted this week on 125 stations. Due to financial woes, the radio net stopped trading on the New York Stock Exchange in late November and now trades over the counter.