Cox Media Group: A History of Evolution and Strategic Ownership
Cox Media Group (CMG) represents a significant shift in how modern media conglomerates organize their assets. Rather than separating businesses by the medium they use—such as print, radio, or television—CMG was designed as an integrated digital media company. This approach allows diverse media platforms to share resources and management, creating a more cohesive operational structure across different markets.
The Formation and Early Growth of CMG
Established in December 2008 by Cox Enterprises, Cox Media Group was formed through the merger of Cox Newspapers, Cox Radio, and Cox Television. This integration moved the company away from traditional silos, treating various publishing mediums as a single entity. By August 2009, the company further realigned its digital assets, radio, television, and publishing into one division.
The city of Dayton, Ohio, served as the prototype for this integrated model. In Dayton, radio, television, newspaper, and direct mail operations were combined into a single facility. In other markets, such as Houston, San Antonio, and Austin, the company utilized regional vice presidents to oversee multiple assets, ensuring shared senior management even when facilities were geographically separated.
Beyond traditional broadcasting, CMG expanded its portfolio to include several specialized services:
- Cox Digital Solutions: Focused on digital sales for both internal and external online properties.
- Cox Reps: Handled national TV sales for various station groups, including Tegna and Gray.
- Digital Platforms: Managed sites such as Kudzu.com and Savings.com, as well as Valpak direct mail.
Diversification and Digital Expansion
In October 2010, CMG entered the local e-commerce space with DealSwarm, a group-buying discount program active in markets like Atlanta, Austin, and Dayton. The company also ventured into digital-only news in April 2013 with the launch of Rare.us. Originally branded as a conservative media source with the tagline "Red is the Center" (and later "America's News Feed"), the site saw significant growth through social media expansion and a broadening of its story coverage.
To adapt to the rise of Over-the-Top (OTT) media services—content delivered via the internet rather than traditional cable or satellite—Cox Digital Solutions was rebranded as Gamut Smart Media from Cox in October 2014. This allowed CMG to maintain its focus on linear television and radio while Gamut specialized in OTT and Connected TV (CTV).
Strategic Divestitures and Market Refinement
Between 2012 and 2013, CMG began refining its footprint to focus on larger markets or clusters of properties. In July 2012, the company announced plans to sell radio stations in smaller markets, including Birmingham, Greenville, Hawaii, Louisville, and Richmond, and spin off television stations in El Paso, Johnstown, Reno, and Steubenville.
These plans were finalized in February 2013, with radio stations sold to SummitMedia and Connoisseur Media, and the television stations sold to the Sinclair Broadcast Group.
The Transition to Apollo Global Management
A major turning point occurred in 2018 and 2019 when Cox Enterprises began exploring strategic options for its television assets. On February 15, 2019, it was announced that Apollo Global Management would acquire a majority interest in CMG's television stations, as well as the integrated radio and newspaper operations in Dayton, Ohio.
While the new entity was tentatively named Terrier Media, it eventually retained the Cox Media Group name. The deal, valued at $3.1 billion (adjusted for Cox's equity stake), was expanded in June 2019 to include CoxReps and Gamut. The acquisition was officially closed on December 17, 2019, following FCC approval.
Regulatory Compliance and Restructuring
To comply with FCC regulations regarding the cross-ownership of daily newspapers and broadcast stations, CMG had to implement several changes:
- The publication frequency of its Ohio newspapers was reduced to three days a week.
- Cox Enterprises reduced its stake in CMG to a nonattributable interest to avoid conflicts with The Atlanta Journal-Constitution.
- Two licenses from Northwest Broadcasting (acquired by Apollo) were surrendered in Yuma, Arizona, and Syracuse, New York, to comply with duopoly rules.
By March 2, 2020, Cox Enterprises repurchased the Dayton Daily News, Journal-News, and Springfield News-Sun, allowing these papers to return to daily publication.
Recent Developments and Market Shifts
In 2022, a proposed acquisition of Tegna by a partnership of Standard General and Apollo was initiated. This deal would have seen CMG acquire stations in Dallas–Fort Worth, Houston, and Austin. However, after a remand for a hearing before an administrative law judge, the deal was terminated on May 22, 2023.
Additionally, on August 1, 2022, CMG completed the sale of 18 stations across various states—including Arizona, California, Idaho, Louisiana, Mississippi, New York, Oklahoma, Oregon, Tennessee, and Washington—to Imagicomm Communications.
Most recently, on June 18, 2024, Cox Media Group implemented a round of layoffs affecting low-level management, morning show hosts, and promotions personnel, though the exact number of positions was not disclosed.
Key Facts
- Founded: December 2008 via the merger of Cox Newspapers, Radio, and Television.
- Major Ownership Shift: Apollo Global Management acquired a majority stake in 2019.
- Acquisition Value: The 2019 Apollo deal was valued at $3.1 billion.
- Digital Pivot: Launched Gamut to handle OTT and CTV advertising.
- Regulatory Impact: Forced divestitures and publication changes due to FCC cross-ownership rules.
| Year | Event | Key Outcome |
|---|---|---|
| 2008 | Formation of CMG | Integrated digital media structure created. |
| 2013 | Small Market Divestiture | Sold stations to SummitMedia, Connoisseur, and Sinclair. |
| 2014 | Gamut Launch | Shift toward Over-the-Top (OTT) media solutions. |
| 2019 | Apollo Acquisition | Majority stake sold to Apollo Global Management. |
| 2020 | Newspaper Repurchase | Cox Enterprises regained 100% ownership of Dayton papers. |
| 2022 | Imagicomm Sale | 18 stations sold to Imagicomm Communications. |
Frequently Asked Questions
What is Cox Media Group?
Cox Media Group is an integrated media company that combines television, radio, and digital assets to share resources and management across various markets.
Who currently owns Cox Media Group?
Apollo Global Management holds a majority interest in the company, while Cox Enterprises retains a minority stake.
What is the difference between CMG and Gamut?
CMG focuses on linear television and radio broadcasting, whereas Gamut is the specialized arm focusing on Over-the-Top (OTT) and Connected TV (CTV) advertising solutions.
Why did CMG sell some of its smaller market stations?
The company shifted its strategy to focus on larger markets or smaller markets that could be clustered together with other existing CMG properties for better efficiency.
What happened to the proposed Tegna acquisition?
The deal, which would have added stations in Dallas, Houston, and Austin to CMG, was terminated on May 22, 2023, after being remanded for a hearing by the FCC.