Sept. 29--Cumulus Media's Chief Executive Lew Dickey is stepping down amid the Atlanta radio giant's struggles. Dickey, who co-founded Cumulus in 1997, has served as CEO for the last 16 years.
The nation's second largest radio station operator said Tuesday that Dickey would be replaced by veteran media executive Mary Berner, effective Oct. 13. Berner joined Cumulus' board of directors in May.
Dickey will transition to the role of vice chairman once he steps down from the CEO position. The shakeup comes just five months after Cumulus said it had extended Dickey's contract through 2018.
"After serving the company day to day for almost 19 years, with the last 16 as CEO of Cumulus, now is the right time for me to transition from CEO to vice chairman of the board," Dickey said in a note to staff. "I'll be working closely with my fellow board members to support, guide and oversee our new CEO."
The management changes are not limited to the CEO job. John Dickey, the brother of the ousted CEO, is stepping down as executive vice president. The executive departures were first reported by the blog Hits Daily Double.
The company's stock has fallen more than 83% over the last 12 months. The shares on Tuesday fell 6 cents, or 8.5%, to 68 cents.
Cumulus, which owns and operates 460 stations, has struggled as listeners have migrated to digital radio and other music outlets.
The firm competes directly with iHeartMedia, formerly known as Clear Channel. In Los Angeles, Cumulus runs rock station KLOS-FM (95.5) and news-talk station KABC-AM (790).
Jeffrey Marcus, chairman of Cumulus' board of directors, credited Dickey with building a big footprint of AM/FM radio stations and building its digital business.
"However," Marcus said in a statement, "maximizing the value of these assets requires making them work together effectively and efficiently."
Under Dickey, Cumulus in 2013 bought radio programmer WestwoodOne. That same year it bought a 15% stake in streaming music company Rdio for $75 million over five years.
Cumulus has also bet big on country music, with its NASH brand that encompasses radio programming, a magazine, concerts and licensing.
In his note to staff, Lew Dickey wrote that his "commitment to the long-term success of Cumulus remains firmly in place."
ALSO:
Steve Mosko upped to chairman of Sony Pictures Television
Arnold Schwarzenegger to replace Donald Trump as 'Celebrity Apprentice' host
