The Gores Group has completed its $25 million investment in Westwood One for control of the company. The radio and TV programming company simultaneously completed a refinancing that had lenders exchange $241 million of debt for $25 million of cash, 25% of the company's equity, and $117.5 million of new senior secured notes. Gores had a 32.7% stake in the company prior to the transaction as a result of a $75 million PIPE deal and $25 million of open market purchases last year.
Gores Group's investment in Westwood is only the second investment by private equity firms in the Broadcasting, Radio & Television industry this year. According to the PitchBook Platform there have been 165 investments in the industry since 2005, but the number of investments has been declining significantly each year, from 71 in 2005 to only 15 last year. One of the likely reasons is the consolidation that the industry has gone through at the hands of private equity investors over the last five years. Add-on acquisitions accounted for over half of all the acquisitions in the industry with Davidson Media Group's eleven acquisitions leading the way.