• by Paul Gough , February 18, 2004

The nation's second-largest radio company plans to continue buying stations in the new year, committing between $100 million and $150 million for acquisitions through the end of 2004.

Atlanta-based Cumulus Media Inc. will own 294 radio stations in 59 markets, mostly mid-size and small markets. Cumulus has spent $600 million in acquisitions since last fall, including stations in Blacksburg, Va., Rochester, Minn., and Sioux Falls, S.D. Lew Dickey, chairman and chief executive, said Tuesday afternoon that Cumulus continued to view acquisitions as a key part of its growth strategy.

"We want to be well-positioned," Dickey said.

That doesn't mean that Cumulus will spend all of the $150 million. Dickey said the stations would have to be quality assets, particularly in clusters in the top 50 to 250 markets. Cumulus would use the money to pay down debt if there aren't any stations that interest it. But he was optimistic that quality stations would be up for sale within the next few years, if not 2004.

Most, but not all acquisitions, are in smaller to mid-size markets. Last fall, Cumulus said it would enter Kansas City with the acquisition of two FM stations, one in Missouri and the other in Kansas, from Syncom Radio Corp. The $25 million deal is expected to close sometime in the first quarter. The two FM stations would be boosted by the move of a Cumulus-owned FM station from Topeka to the Kansas City market, which would create a Cumulus cluster in the nation's 29th market. Kansas City would be the second large market that Cumulus has entered behind Houston.

"We'll play anywhere we can find markets that are growing," Dickey said. But he also said that the two larger markets are only two of 59 in which Cumulus does business.

Earlier Tuesday, Cumulus reported fourth-quarter revenues of $74.9 million, up $4.2 million from the same period a year ago. Full-year revenues rose $29.4 million to $282 million in 2003.

Cumulus Sees Acquisitions in 2004.

The nation's second-largest radio company plans to continue buying stations in the new year, committing between $100 million and $150 million for acquisitions through the end of 2004.

Atlanta-based Cumulus Media Inc. will own 294 radio stations in 59 markets, mostly mid-size and small markets. Cumulus has spent $600 million in acquisitions since last fall, including stations in Blacksburg, Va., Rochester, Minn., and Sioux Falls, S.D. Lew Dickey, chairman and chief executive, said Tuesday afternoon that Cumulus continued to view acquisitions as a key part of its growth strategy.

"We want to be well-positioned," Dickey said.

That doesn't mean that Cumulus will spend all of the $150 million. Dickey said the stations would have to be quality assets, particularly in clusters in the top 50 to 250 markets. Cumulus would use the money to pay down debt if there aren't any stations that interest it. But he was optimistic that quality stations would be up for sale within the next few years, if not 2004.

Most, but not all acquisitions, are in smaller to mid-size markets. Last fall, Cumulus said it would enter Kansas City with the acquisition of two FM stations, one in Missouri and the other in Kansas, from Syncom Radio Corp. The $25 million deal is expected to close sometime in the first quarter. The two FM stations would be boosted by the move of a Cumulus-owned FM station from Topeka to the Kansas City market, which would create a Cumulus cluster in the nation's 29th market. Kansas City would be the second large market that Cumulus has entered behind Houston.

"We'll play anywhere we can find markets that are growing," Dickey said. But he also said that the two larger markets are only two of 59 in which Cumulus does business.

Earlier Tuesday, Cumulus reported fourth-quarter revenues of $74.9 million, up $4.2 million from the same period a year ago. Full-year revenues rose $29.4 million to $282 million in 2003.