Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the “Company,” “we,” “us,” or “our”) announced today that it has executed definitive documentation to acquire Cherry Creek Broadcasting LLC (“Cherry Creek”) for $18.75 million.
Simultaneously, and due to FCC ownership limitations, Townsquare will divest six radio stations in Missoula, MT, to Anderson Broadcasting, Legacy Broadcasting (a non-profit organization), and Missoula Community Radio (also a non-profit organization), and place two radio stations in Tri-Cities, WA in a divestiture trust.
Pro forma for the acquisition and divestitures (collectively known as the “Transaction”), Townsquare will add assets including 35 local radio stations in nine markets, increasing its portfolio of market leading local radio stations to 356 in 74 markets.
This Transaction solidifies Townsquare’s position as the the only local media and digital marketing solutions company of scale focused principally on markets outside of the Top 50 in the United States, a vital differentiator for our Company.
“We are very excited to announce the acquisition of Cherry Creek’s market leading local media brands. The acquisition includes many local heritage brands with strong competitive positions, meaningful audience share, and very talented local teams,” commented Townsquare Chief Executive Officer, Bill Wilson.
“This represents an excellent opportunity to deploy our Digital First Local Media strategy across a broader footprint, bringing our national scale, strong digital platform, and resources to the
local communities and local businesses in these markets, building upon the strong relationships these local teams have already built with their communities.
We look forward to accelerating the digital growth in these markets as we implement our flywheel of powerful and effective marketing and advertising (digital and radio) solutions and technology platforms, in combination with our highly relevant, localized content on-air and online.
We believe this acquisition furthers our goal of being the #1 Digital First Local Media Company in markets outside of the Top 50 in the United States.”
“This acquisition represents a compelling use of capital that aligns with our priorities of investing in our local business through both organic investments and prudent acquisitions that support our revenue and profit growth,” added Townsquare Chief Financial Officer, Stuart Rosenstein.
“This acquisition is net leverage neutral and due to the strong cash generation of our business and the acquired assets, will not impact our ability to reach our goal of 4x net leverage by year end.”
In connection with the Transaction, Townsquare is acquiring assets including 35 radio stations in nine markets (Butte, MT; Great Falls, MT; Missoula, MT; Montrose, CO; Sierra Vista, AZ; St. George-Cedar City, UT; Tri-Cities, WA; Wenatchee, WA; and Williston, ND). The Transaction will be funded with cash on hand.
The Transaction is expected to close in the third quarter of 2022, pending regulatory approval. McDermott, Will & Emery and Wilkinson Barker Knauer served respectively as transaction and FCC counsel to Townsquare in connection with the Transaction. Kalil & Co., Inc. acted as exclusive broker for Cherry Creek.