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Cumulus Media acquires Susquehanna Radio for $1.5 billion

May 2006

Clients Cumulus Media Inc.

Jones Day advised Cumulus Media Inc. (Cumulus) in the $1.5 billion acquisition by Cumulus Media Partners, LLC (CMP), a partnership among Cumulus, Bain Capital, The Blackstone Group, and Thomas H. Lee Partners, of the radio business of Susquehanna Pfaltzgraff Co. Cumulus contributed its radio assets in Houston and Kansas City to CMP in exchange for a 25% membership interest, and the three private equity firms contributed cash. Cumulus provides management services to CMP for a management fee. With performance incentives, Cumulus may increase its 25% stake to approximately 40%. Financing for the acquisition was provided by Deutsche Bank, Merrill Lynch, Goldman Sachs, and UBS.

Susquehanna Radio, headquartered in York, Pennsylvania, was the largest privately-owned radio broadcasting company in the U.S. and ranked 11th by revenue. It owned 33 stations in eight of the top 50 markets, including San Francisco, Dallas, Houston, and Atlanta. CMP will seek other acquisition opportunities in the top 50 markets.

In addition to M&A representation, Jones Day provided antitrust, employee benefits, environmental, and tax advice regarding this transaction.

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