• by Erik Sass  @eriksass1, August 1, 2011

Two of the radio industry's biggest content providers, Dial Global and Westwood One, announced they will merge their businesses sometime in the fourth quarter. The stock swap deal will bring together complementary portfolios of audio content from both companies' menu of sports, talk, news, music, and entertainment programming. It will also allow them to combine national ad sales forces serving independent producers and networks.

Before the merger, Dial Global produced, syndicated, distributed or provided ad sales representation to over 200 programs reaching 8,000 radio stations across the U.S.; it also handles prep services and produces formats, jingles and imaging.

Westwood One produces and provides ad sales representation for over 150 radio shows reaching 5,000 radio stations nationwide.

Triton Media Group said it "will focus exclusively on operating our remaining division, Triton Digital," while continuing to work closely with the newly merged company formed by Dial Global and Westwood One, according to Triton President and CEO Neal Schore.

This deal may result in long-sought financial stability for Westwood One, which was hit hard by the radio ad sales slump during the economic downturn. In October 2009, Westwood One barely avoided defaulting on its debt with Wells Fargo Foothill and various holders of senior notes. In April of this year, Westwood One sold its Metro Traffic Division (including Sigalert, acquired in January 2010) to Clear Channel Radio.