• by Erik Sass  @eriksass1, August 30, 2013

In what could be the biggest radio industry deal of the year, Cumulus Media is buying Dial Global, which produces and syndicates radio content, for $260 million in cash, according to The Wall Street Journal, which first reported the news. Cumulus is funding the deal, in part, by selling or swapping radio stations in a number of smaller markets to Townsquare Media in a transaction worth $238 million.

The acquisition of Dial will make Cumulus more competitive against rivals, including Clear Channel’s Premiere Radio Networks, which creates and distributes content for shows featuring Rush Limbaugh, Glenn Beck, and Steve Harvey as well as ESPN Radio, the dominant sports radio broadcaster.

Dial Global’s portfolio of syndicated radio content includes news, talk, sports and music programming. In the talk category, Dial distributes shows from Dennis Miller, Michael Smerconish and Herman Cain, among others. Dial’s news programming offerings include CBS News Radio, NBC News Radio and CNBC Business Radio.

Its coverage of professional and college sports includes the U.S. Open, The Masters, National Football League, NCAA Football, and NCAA Basketball. Dial also produces jingles and other creative for radio advertisers.

In recent years Dial has moved aggressively to bolster its content offerings. In August 2011, Dial merged with Westwood One, which before the merger produced and provided ad sales representation for over 150 radio shows reaching 5,000 radio stations nationwide. And in May 2012, it partnered with NBC to create NBC News Radio.

In the Townsquare deal, Cumulus is giving Townsquare 55 stations in 11 smaller markets in return for 10 stations, also located in smaller markets, plus $116 million. Cumulus is offloading stations in Augusta-Waterville, Presque Isle and Bangor, Maine; Binghamton, New York; Bismarck, North Dakota; Grand Junction, Colorado; Killeen-Temple and Odessa-Midland, Texas; New Bedford, Massachusetts; Sioux Falls, South Dakota; and Tuscaloosa, Alabama. In return, Cumulus is getting stations in Bloomington and Peoria, Illinois.

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