Townsquare Media has announced it will acquire Cherry Creek Media for $18.75 million.
The deal will add 35 stations in nine markets bringing Townsquare to 356 stations in 74 markets. As part of the acquisition, Townsquare will divest six stations in Missoula MT to Anderson Broadcasting and two non-profits: Legacy Broadcasting and Missoula Community Radio. They will also place two stations in the Tri-Cities of Kennewick/Richland/Pasco WA into a divestiture trust. Townsquare will enter Sierra Vista AZ, Montrose CO, Butte and Great Falls MT, Williston ND, St. George/Cedar City UT, and Wenatchee WA.
In the deal Townsquare will acquire:
Sierra Vista AZ – Country 92.3 KWCD, Hot AC “K101” 100.9 KZMK, and Classic Rock “Thunder 98.1” 1420 KWAN.
Montrose CO – Country “94 Kix” KKXK, CHR “103.7 The River” KSNN, and Oldies “KUBC Gold” 580/104.5 KUBC.
Butte MT – Country 92.5 KAAR, Classic Rock 95.5 KMBR, Variety Hits “107.7 Dave-FM” KMTZ, and Conservative Talk 1370/94.7 KXTL.
Great Falls MT – Classic Hits “Kool 92.9” KLFM, Country “94.5 Max Country” KMON-FM, AC “97.9 The River” KVVR, CHR “K99” 98.9 KAAK, Classic Country 560 KMON, Alternative “107.5 The Peak” KMON-HD2, Sports “99.9 Big Sky Sports” KMON-HD3, and Variety Hits “Big Stack 103.9” KMON-HD4.
Williston ND – CHR “Power 95.1” KTHC-FM, Country “Dakota Country Z96.1” KYYZ-FM, and News/Talk 660 KEYZ.
St. George/Cedar City UT – CHR “B92.1” KXBN, AC “Star 98” KREC, Variety Hits “101.9/99.1 Dave-FM” KXFF, Country “New Country 107.3/94.9” KIYK/KCIN, News/Talk 890/92.5 KDXU and 590/107.7 KSUB, and Sports “97.7 ESPN” 1210 KHKR.
Wenatchee WA – CHR “96.7/103.9 KW3” KWWW, Country “Kissin’ 97.7” KYSN, Hot AC “99.5 The Bridge” KQBG, Classic Rock “The Quake 102.1” KPQ-FM, News/Talk 560/101.7 KPQ, Sports “1340 The Hawk” KYSP, and Conservative Talk “Talk 106.7” 1370 KKWN.
In Missoula, where six stations will be divested, Cherry Creek owns Country “93.3 Eagle Country” KGGL, AC “Max 98.7/96.9” KHKM, Classic Rock “Z100” KZOQ, CHR “Now 106.7” KXDR, and Sports “Griz Sports 1450/92.7” KGRZ. Townsquare already owns Country 94.9 KYSS, Rock “96.3 The Blaze” KBAZ, Alternative “Alt 101.5” KAMM, CHR “107.5 Zoo-FM” KENR, Conservative Talk 930/99.7 KMPT, News/Talk 1290/98.3 KGVO, and News/Talk 1240 KLYQ.
In the Tri-Cities of Washington where two stations will be placed in a divestiture trust, Cherry Creek owns Regional Mexican “La Super 92.5” KZHR, AC “Mix 105.3” KONA-FM, News/Talk 610 KONA and the Pacific Northwest AG Network. Townsquare owns “97 Rock” 97.1 KXRX, CHR “97.5 Kiss-FM” KOLW, Hot AC “98.3 The Key” KEYW, Country 102.7 KORD, and News/Talk 870/98.7 KFLD.
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.
This story first appeared on radioinsight.com