Cumulus Sells WABC/NY To Red Apple Media
• Cumulus Media Inc. took another giant step closer to exiting the New York City market with the announcement that it has entered into an agreement to sell the legendary 77 WABC-AM/New York to Red Apple Media, Inc., a wholly-owned subsidiary of Red Apple Group, for $12.5 million in cash.
Mary G. Berner (left), President & CEO of Cumulus, said, “Today’s agreement with Red Apple is yet another step in the execution of our portfolio optimization priority to drive Cumulus’ long-term success. Consistent with our financial goals, we intend to use the sale’s net cash proceeds to pay down debt and invest in the Company to better serve our 250 million listeners and the advertisers who want to reach them. We are also pleased that WABC’s excellent team will work with Red Apple following the transaction’s close to continue building this iconic station’s legacy.”
John A. Catsimatidis (right), Chairman & CEO of Red Apple Group, stated, “I’m very pleased that Red Apple Media Inc. has agreed to acquire 77 WABC-AM Radio. The station is a real New York legend with a rich history in broadcasting. I started a radio show five years ago, which is now available in 14 states and on the Internet; it has gained a large and loyal audience. Our purchase of WABC is the next step in building a new broadcasting business, and we look forward to considering the acquisition of more broadcasting assets. We plan to retain the excellent staff and talent working at the station now and look forward to working with them.”
Under the terms of the agreement, Red Apple will take responsibility for programming WABC immediately following the close of the sale, which is expected to occur in the third quarter of 2019. The transaction is subject to customary closing conditions, including regulatory approval.
With the recent sale of WPLJ to EMF, and now, WABC to Red Apple, the last remaining Cumulus property in the New York City area is Urban AC WNBM (Radio 103.9), licensed to suburban Bronxville, NY — and that one will soon follow the path of WPLJ and WABC, as Berner commented, “We do expect to sell WNBM and exit the New York City market.”
