The preferred stock sale follows a
"This financing is key to unlocking the future of Westwood One," said
As part of the closing, the Company increased the size of its Board of
Directors to eleven directors. In accordance with the terms of the Purchase
Agreement, the following three Gores' designees were elected to the Board:
Beusse added, "In addition to the capital Gores provides, these new board
members provide us with the additional operational resources and technical
sophistication that will help drive our turnaround. Also, the arrival of
The transaction was approved by the Company's shareholders at a special
meeting held on
Moelis & Company and UBS Investment Bank served as financial advisors to the Strategic Review Committee of the Board of Directors of Westwood One and Skadden, Arps, Slate, Meagher & Flom LLP served as the committee's legal advisor.
Proskauer Rose LLP served as The Gores Group's legal advisor. Mosaic Capital, LLC served as financial advisor.
About Westwood One
Westwood One (NYSE: WON) is a platform-agnostic content company providing over 150 news, sports, music, talk, entertainment programs, features and live events to numerous media partners. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries and to the Web. This content includes news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages traffic information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 5,000 radio stations. For more information please visit www.westwoodone.com.
About The Gores Group, LLC
Founded in 1987, The Gores Group, LLC is a private equity firm focused on
completing investments, including acquiring controlling interests in mature
businesses across industry sectors that can benefit from the firm's operating
experience and flexible capital base. The firm combines the operational
expertise and detailed due diligence strength of a strategic buyer with the
M&A capabilities of a traditional financial buyer. The Gores Group has
demonstrated over time a track record of creating value in its portfolio
companies alongside management. The Gores Group is currently investing from
its
Certain statements in this release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The words or phrases "guidance," "expect,"
"anticipate," "estimates" and "forecast" and similar words or expressions are
intended to identify such forward-looking statements. In addition any
statements that refer to expectations or other characterizations of future
events or circumstances are forward-looking statements. Various risks that
could cause future results to differ from those expressed by the forward-
looking statements included in this release include, but are not limited to:
changes in economic conditions in the U.S. and in other countries in which
Westwood One, Inc. currently does business (both generally and relative to the
broadcasting industry); advertiser spending patterns, including the notion
that orders are being placed in close proximity to air, limiting visibility of
demand; changes in the level of competition for advertising dollars;
technological changes and innovations; fluctuations in programming costs;
shifts in population and other demographics; changes in labor conditions; and
changes in governmental regulations and policies and actions of federal and
state regulatory bodies. Other key risks are described in the Company's
reports filed with the SEC, including the Company's annual report on Form 10-
K/A for the year ending
SOURCE Westwood One, Inc.