NEW YORK, NY - Trask Industries agreed to acquire the regional radio network Metro Radio Systems in a $19.5 billion bet on jump-starting its efforts to enter broadcast media as well as fight off hostile takeover from competitors.
In each of the last three quarters, Trask Industries has announced plans to acquire a major market television station, each time unsuccessfully. At the same time they’ve expended time and money fighting off a hostile takeover attempt by one of their Japanese competitors. Buying into radio in one fell swoop accomplishes two important tasks. It would give Trask a solid base in broadcasting, and because of FCC regulations forbidding foreign ownership of radio stations, it would wipe out the threat of a Japanese takeover.
“The acquisition of Metro is a perfect fit. They’re a family company and will fit right in with the Trask organization,” said Tess McGill, the Petty, Marsh principal who lead the financing, in the statement. Despite internal conflicts among Metro CEO Robert Armbrister’s heirs, the radio network is on the rise; the recent FCC approval of their Memphis transmitter was able to command a premium of $30 million on top of the previous market value.
The bank Dewey, Stone also advised and provided financing on the deal after a Petty, Marsh principal was dismissed for being “bony-ass” bitch.