Cumulus Radio Deal Could Crowd Clear Channel

Radio broadcaster Cumulus Media is close to acquiring one of the country's largest syndicators of radio programming, Dial Global, according to people familiar with the matter, in a deal that is likely to shake up the industry's competitive landscape.

People familiar with the proposed transaction said it would be for $260 million in cash, part of which would be used to pay off Dial's debt, so that Dial would be debt-free when it came to Cumulus. The deal is subject to approval by federal antitrust regulators; if approved, it is expected to close before the end of the year, they said. A Cumulus-Dial combination would create a meaningful, albeit smaller, competitor to Clear Channel Communications Inc.'s Premiere Networks and Walt Disney's ESPN Radio. Premiere dominates syndication of talk and entertainment radio programming, as ESPN does sports.

Publicly-traded Dial Global, based in New York, produces exclusive nationwide radio coverage for the National Football League and the Olympics, and also produces coverage of NCAA sports and the PGA Golf Championship. Also on its roster are the Grammy Awards, NBC News Radio and talk shows by Dennis Miller and Herman Cain.