Cox Enterprises, Inc. today announced that it has reached an agreement to sell Cox Media Group’s Radio station portfolio as well as its CoxReps and Gamut national advertising businesses to a new broadcasting company that is substantially owned by private equity funds managed by affiliates of Apollo Global Management, LLC. The transaction will expand the new company, which announced in February its purchase of Cox Media Group’s broadcast television group and the company’s Radio, Newspaper and Television properties in Ohio.
Cox Enterprises will maintain a minority stake in the new company, which will maintain the name “Cox Media Group” and will be headquartered in Atlanta, Ga.
Cox Media Group operates more than 60 radio stations across 11 markets, reaching 14 million listeners monthly. CoxReps is the country’s largest national television rep company for local broadcast television. Gamut offers market leading, customized and localized digital advertising and OTT solutions to clients on a national scale.
The buyer plans to maintain the successful operating structure of Cox Media Group’s Television, Radio, CoxReps and Gamut businesses and leverage these assets to continue building a national media company with station properties in key markets across the country.
“We are happy our Cox Radio and national ad platforms will continue to be operated with our television group,” said Alex Taylor, president and CEO, Cox Enterprises. “Keeping these media businesses together gives us even more confidence in the future success of the new company. We have spent many years fostering a culture of collaboration and innovation across these businesses and are pleased to see that work will continue.”
“We are thrilled to acquire the Cox Radio station portfolio, CoxReps and Gamut and combine them with the Cox Television business to form a new media company focused on quality local broadcasting,” said David Sambur, Chairman of the buyer and Senior Partner of Apollo. “Cox has deep roots in the media industry and has stood for the highest quality in local journalism for the past 120 years. As we shepherd these businesses into the future, we are committed to investing in high quality programming and fostering innovation in local media.”
The transaction is subject to customary regulatory review and closing conditions. Radio stations currently owned by Cox Media Group are set forth below. To comply with FCC ownership limits, the buyer intends to divest two FM stations, one each in Orlando and Tampa.
Eversheds Sutherland LLP and Covington & Burling LLP served as the legal advisors to Cox Enterprises in the transaction.
RBC Capital Markets LLC, Guggenheim Securities, LLC and LionTree Advisors, LLC served as the financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Cooley LLP served as the legal advisors to the buyer in this transaction.
About Apollo Global Management
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo. Apollo had assets under management of approximately $303 billion as of March 31, 2019 in private equity, credit and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.apollo.com.
About Cox Enterprises
Cox Enterprises is dedicated to building a better future through our leading communications, automotive services and media companies. Our major operating subsidiaries include Cox Communications, Cox Automotive and Cox Media Group. Headquartered in Atlanta, Georgia, Cox is a global company with over $20 billion in annual revenues and brands that include Autotrader, Kelley Blue Book and Cox Homelife. Founded in 1898 by Ohio Governor James M. Cox, the company is a family-owned business committed to its people, communities and the planet. To learn more about Cox, visit coxenterprises.com.
About Cox Media Group
Cox Media Group is an integrated broadcasting, publishing, direct marketing and digital media company. The company’s operations include broadcast television stations, radio stations, daily newspapers and non-daily publications. Additionally, Cox Media Group operates the National Advertising Platform businesses of CoxReps, Gamut?and?Videa; and offers a full suite of local and regional advertising services through its?Local Solutions?and?Ideabar?businesses. For more information about Cox Media Group, please visit www.coxmediagroup.com.
