Meruelo Media Buying KLOS/Los Angeles
• As first reported by RAMP last Friday, Meruelo Group officially announced that its media division, Meruelo Media, has entered into an agreement with Cumulus Media Inc. to purchase KLOS/Los Angeles for $43 million. The heritage Rock station will join Meruelo’s existing Los Angeles portfolio, which includes Rhythmic KPWR (Power 106), Classic Hip Hop 93.5 KDAY and simulcast partner 93.5 KDEY-FM/Riverside, along with television properties KWHY 22 and KBEH 63.
In making the announcement, Alex Meruelo, Chairman and CEO of the Meruelo Group said, “95.5 KLOS is one of the most iconic Rock stations in the world. We are thrilled to add this legendary brand to our Media Division.”
Otto Padron, President of Meruelo Media, added, “KLOS will be a crown piece in our strategically curated, L.A.-focused multimedia portfolio. As we’ve done with all our media properties, we will take full advantage of our deep local resources to grow the globally recognized KLOS heritage rock brand for generations to come.”
Effective Tuesday, April 16, 2019, Meruelo Media will take over programming of KLOS under a Local Marketing Agreement. Mr. Padron expects the transaction to be completed in the third quarter of 2019, after customary regulatory approvals are obtained.
• At the same time Cumulus also announced that it has entered into a swap agreement with Connoisseur Media under which Cumulus will receive WODE-FM, WWYY-FM, WEEX-AM and WTKZ-AM in and around Allentown, PA in exchange for two Cumulus stations in Southern Connecticut — WEBE-FM in Westport, CT, and WICC-AM in Bridgeport, CT. The parties will begin programming each other’s respective stations via LMA on May 1, 2019.
Mary G. Berner, President & CEO of Cumulus Media, said, “These transactions are part of the continued execution of our portfolio optimization strategy. Both transactions are accretive, and the sale of KLOS-FM to Meruelo Media at an attractive multiple allows us to generate substantial cash, which can be used to further pay down debt and invest in high potential business opportunities. The Connoisseur Media swap significantly strengthens our presence in Allentown and the Lehigh Valley.”
Moelis & Company LLC represented Cumulus as financial advisor in the sale of KLOS-FM to Meruelo Media. MVP Capital represented Cumulus as financial advisor in the swap with Connoisseur Media. Jones Day represented Cumulus as legal counsel on both transactions.
