Here's the story I read:
Gaylord Sells Its Nashville FMs To Cumulus
As rumored by R&R this morning, Cumulus Media has agreed to purchase Gaylord's WSM-FM & WWTN/Nashville for $65 million in cash. Proceeds from the transaction will be used to fund a portion of the construction of Gaylord Opryland Texas Resort & Convention Center, the renovation of the Grand Ole Opry House in Nashville and what Gaylord terms "other growth initiatives." Gaylord has already agreed to let Cumulus program and market WSM-FM & WWTN, and the company will begin to do so following the expiration of statutory antitrust waiting periods. The companies expect the transaction to close in early Q3. Gaylord will continue to own WSM-AM/Nashville, but Cumulus will manage the station's advertising via a joint sales agreement. Speaking of WSM-AM, Gaylord says it "remains committed to developing further this cherished icon of country music and key distribution channel for the company's Grand Ole Opry content." Cumulus will now own five stations in the Music City; it already owns WNPL, WQQK & WRQQ/Nashville.
Cumulus Agrees To Add Opry Program
The two companies have announced a joint marketing agreement under which Cumulus has committed to carrying America's Grand Ole Opry Weekend, a two-hour weekly syndicated program to be distributed by Westwood One beginning next month, on its 260 other Country stations.
Gaylord's Focus: Hotels And Opry
Gaylord Entertainment President/CEO Colin Reed says the sale of its two FMs in Nashville " is another step in our transformation as we sharpen our focus on our core businesses — Gaylord Hotels and the Grand Ole Opry." Reed says that WSM-AM is an "integral component" of the company's strategy to extend the reach of the Opry brand, and believes its JSA with Cumulus and that company's agreement to carry America's Grand Ole Opry Weekend benefits both Cumulus and Gaylord. "We are proud of the success that WWTN and WSM-FM enjoyed while under our ownership," Reed said. "We are confident that Cumulus possesses the expertise to enhance further the strong positions that WWTN and WSM-FM currently hold in the Nashville market."
[This message was edited by Alvin Blaine on 25 March 2003 at 11:03 AM.]
