Editing Cumulus Media (section)

===Origins===
Cumulus Media was established in August 1998 by radio consultant Lewis Dickey Jr. and media and technology entrepreneur Richard Weening. The [[Telecommunications Act of 1996]], among other legislation, relaxed media ownership restrictions, allowing a single owner to possess or control an unprecedented number of radio stations per market and nationwide. Dickey, then a nationally known radio programming consultant, was acting as a consultant to a small radio group in which Weening had a personal investment. Weening signed onto Dickey's idea to acquire and operate radio stations in mid-size markets as opposed to the largest markets on which competing radio group [[Clear Channel Communications]] was focusing. Dickey was the radio expert and Weening was the corporate finance and start-up CEO. Dickey was president of both radio consulting firm Stratford Research<ref>{{cite web|url=http://www.fmqb.com/Article.asp?id=1280111|title=Lewis Dickey, Jr.|url-status=dead|access-date=November 30, 2015|archive-url=https://web.archive.org/web/20160107000401/http://www.fmqb.com/Article.asp?id=1280111|archive-date=January 7, 2016}}</ref> and his family company, Midwestern Broadcasting, with two stations in [[Toledo, Ohio]]; these stations would later be acquired by Cumulus. Weening had successful experience as a start-up CEO in book and magazine publishing, online services and enterprise software systems. He was then CEO of Quaestus & Co., Inc., a [[private equity]] firm specializing in media and technology startups. For the new radio company, Weening chose the name Cumulus for the [[Cumulus cloud|type of cloud formation]] for their ubiquity in the sky, which Weening and Dickey hoped would be the same for their stations across the country. Quaestus provided the seed capital to make the first station acquisitions as a model for the Cumulus business strategy.<ref name="fundinguniverse.com">{{cite web|url=http://www.fundinguniverse.com/company-histories/cumulus-media-inc-history/|title=History of Cumulus Media Inc.|website=FundingUniverse|access-date=November 30, 2017}}</ref>

The next significant milestone was obtaining a $50&nbsp;million investment from the State of Wisconsin Investment Board (SWIB),<ref>{{Cite web|url=https://www.swib.state.wi.us/|title=State of Wisconsin Investment Board (SWIB)|website=swib-1}}</ref> which previously invested in Weening's magazine publishing company. With this capital in place, Cumulus began full-scale operations on May 22, 1997. Weening assumed the role of Executive chairman focusing on acquisitions deal structuring, corporate finance, and internet from the company's original headquarters in [[Milwaukee, Wisconsin]]. Dickey selected stations to buy and oversaw radio programming, operations and strategy as Executive vice-chairman. Dickey brought in highly regarded radio operator William Bungeroth to serve as President of Cumulus Broadcasting from new offices in [[Chicago, Illinois|Chicago's]] [[Hancock Center]]. Having a reputation as an advertising sales leader, Bungeroth oversaw market-level tactical execution, including the integration of newly acquired stations into market operating units. John Dickey, brother of Lewis and himself an experienced radio programming consultant. would oversee station content.<ref>{{cite web|url=https://www.bloomberg.com/research/stocks/.../person.asp?.|title=Terms of Service Violation|date=June 24, 2023 |publisher=Bloomberg L.P.}}</ref><ref>{{cite web|url=https://www.bloomberg.com/research/stocks/.../snapshot.asp?...|title=Terms of Service Violation|date=June 24, 2023 |publisher=Bloomberg L.P.}}</ref>

SWIB's investment was soon followed by another $50&nbsp;million from Wisconsin-based [[Northwestern Mutual Life Insurance Company]] and $25&nbsp;million from NationsBank Capital Corporation. With this financial backing secured, Dickey and Weening began acquiring radio stations yet managed to stay "under the radar", not attracting much notice or competition. In its first 12 months in operation, Cumulus acquired over 100 stations in 31 markets.<ref name="fundinguniverse.com" /> Soon it was clear that the company would need over a billion dollars for its desired acquisitions, and an [[initial public offering]] of stock was soon made.

The Cumulus strategy, as articulated in public filings, was to acquire multiple stations in a city or market, consolidate them physically to share a common infrastructure to [[Economies of scale|reduce operating expenses]] but enrich programming. Each station would be programmed with a unique music format, live programming, brand, and target audience. The central idea was to create a cluster of radio stations that could compete with newspapers by offering advertisers a range of target demographic choices comparable to the range of content sections in print. At the time of Cumulus' founding, newspaper display and classified advertising claimed the largest share of local advertising dollars. By offering a range of audiences like newspapers, Cumulus could gain a greater share of the local advertising dollar than the individual stations could garner separately. In addition, acquiring the top-performing stations in a given market as part of the operating cluster would yield more national advertising. The market focus would be on those deemed to offer substantial growth opportunities, while the station focus was the leading station in the market and other stations well-positioned for significant growth.<ref name="sec.gov">{{cite web |url=https://www.sec.gov/Archives/edgar/data/1058623/000095012399006632/0000950123-99-006632.txt |title=Cumulus Media |website=U.S. Securities and Exchange Commission }}</ref>