Beasley Buying WDMK/Detroit From Urban One
• Beasley Broadcast Group, Inc. has entered into a definitive agreement to acquire Urban AC WDMK (105.9 Kiss FM)/Detroit and three translators from Urban One for $13.5 million in cash. Beasley’s pending acquisition of WDMK-FM is complementary to the Company’s three existing radio stations — Active Rock WRIF, Rhythmic WMGC (105.1 The Bounce)and Classic Rock WCSX— and digital operations in the Detroit market, and reflects the Company’s long-term focus on premium local programming and content.
Excluding one-time transaction costs, the acquisition of is expected to be immediately accretive to Beasley’s free cash flow without materially altering the Company’s leverage. Beasley intends to fund the acquisition through borrowings under its credit facility and cash generated from operations. Commenting on the proposed transaction, Beasley CEO Caroline Beasley, said, “The accretive acquisition of WDMK-FM significantly enhances our revenue and competitive position in Detroit. Detroit is undergoing an exciting renaissance as a result of billions of dollars of new investments in the city’s residential, commercial, entertainment and cultural centers, all of which are driving new residents, businesses, tourists, employment and economic activity.”
She added, “We entered the Detroit market in late 2016 and have consistently improved the operating results of the three stations we acquired, and we believe the proposed transaction is a strategically and financially compelling growth opportunity for our shareholders. The addition of WDMK-FM will mark further progress toward our goal of capturing 30 percent revenue share in each of our markets while delivering valuable synergies and the potential for SOI margin improvement.”
In conclusion, Ms. Beasley said, “We look forward to realizing the strategic benefits of the WDMK-FM transaction in 2020 as we continue to advance our initiatives focused on leveraging our premium local programming and brands, while aggressively rolling out our digital offerings and distribution capabilities to reinforce and grow Beasley’s leadership position across all audio platforms in our markets. This approach will enable us to deliver great local content to listeners while creating an even stronger marketing platform for local businesses.”
The transaction, expected to close during fourth quarter of 2019, is subject to FCC approval and all the other customary closing conditions. The proposed transaction was brokered by Michael Bergner.
