• by Erik Sass  @eriksass1, November 9, 2007

Cumulus Media Inc. said third-quarter revenues from its radio business were essentially flat compared to the same period last year, for a total of $84.2 million. That's slightly better than the radio industry as a whole, which is expected to post a total 3% decline in third-quarter revenues.

Although revenues were stable, Cumulus posted a loss of $70.5 million, almost all related to the impending buyout of the company by its management. If the $1.3 billion buyout organized by CEO Lewis Dickey proceeds as planned, investors led by Merrill Lynch Global Private Equity will take the company private sometime in the first half of 2008. Shareholders will receive $11.75 per share, representing a roughly 40% premium over its trading price on July 20, the day before the deal was announced.

The deal comes at the same time as another big buyout planned for Clear Channel Radio, approved by shareholders in late September. The $17.5 billion sale to Thomas H. Lee Partners and Bain Capital Partners, LLC will effectively take the company private, with about 30% of the stock remaining in the hands of institutional shareholders.

Altogether, Cumulus operates 344 stations in 67 U.S markets, making it the second-largest broadcaster after Clear Channel Radio by station count.