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Wednesday, May 20, 2009

The Radio Industry Braces For More Craters
Cox Radio Now Privately Held Property of Cox Enterprises
by: MediaBuyerPlanner.com

Cox Enterprises’ wholly owned subsidiary, Cox Media Group, has successfully taken Cox Radio Inc. private.

The group completed its tender offer to acquire all 10 million-plus outstanding shares of Class A common stock, for a total of 59.4% of Cox Radio’s publicly held Class A shares.

The shares included approximately 917,500 shares subject to guaranteed deliveries and approximately 327,000 shares tendered by affiliates. Cox Media Group has accepted for payment all shares validly tendered pursuant to the tender offer.

Together with the approximately 78% of the equity interest already beneficially owned by Cox Enterprises, Cox Enterprises will own approximately 72,652,000 shares or 91.4% of the 79,489,544 Cox Radio shares outstanding. Shareholders who have tendered their shares will receive $4.80 per share for their shares promptly following the guaranteed delivery period.

“We are pleased that Cox Radio shareholders supported this transaction and, in so doing, took advantage of an excellent opportunity to obtain liquidity at a 45% premium over the closing price the trading day prior to commencement of the offer,” said Jimmy W. Hayes, president and CEO of Cox Enterprises. “We believe that private ownership offers advantages that will assist Cox Radio in attaining its business objectives and managing its capital structure as well as ensuring that Cox Radio maintains its best-in-class operations.”

When the deal was first announced, Hayes said that as a privately held concern, Cox Radio would be able to take a long-term approach, particularly important in the current economic environment.

Pursuant to the tender offer, as soon as practicable, Cox Enterprises will implement a short-form merger under Delaware law in which Cox Radio will become a wholly-owned subsidiary of Cox Enterprises. All remaining public shareholders, other than those as to which appraisal rights are perfected, will have the right to receive $4.80 per share for their shares.