Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now


Analysts Have Lingering Questions About Citadel’s Purchase of ABC Radio

Analysts Have Lingering Questions About Citadel's Purchase of ABC Radio

Two analysts have questions about the ramifications of Citadel’s purchase of ABC Radio and the ABC Radio Networks in a deal worth about $2.7 billion.
Robert Udowitz of BIA Financial Network said the purchase allows Citadel to move into much larger markets; ABC has stations in all of the top ten markets; prior to the acquisition the largest market in which Citadel had a station was market rank 36 – Providence, RI.
It’s interesting, he adds, that ABC retains the ESPN radio network and ESPN cable network. Overall, the combined companies will have good geographic distribution, Udowitz said.
Marci Ryvicker of Wachovia Capital Markets asks in a research note how would the new Citadel generate synergies with a platform that is diverse in cluster size and geography.
While Citadel “did get a fair price for these assets in our opinion, the transaction’s possible dilution and the potential lack of synergies leave us with a cautious view on the stock,” she notes.