Citadel Broadcasting currently owns and operates 159 FM and 60 AM radio stations.
After the transaction, Citadel Communications will comprise 173 FM stations and 68 AM stations, in addition to the ABC Radio Networks.
As part of the transaction, 14 FM and eight AM ABC stations in nine major markets — including New York, Los Angeles, Chicago, San Francisco and Dallas — will join Citadel Communications.
In addition, the merger includes the ABC Radio Networks, which create and distribute programming to more than 4,000 affiliates. The programming includes syndicated radio programs such as “Paul Harvey News and Comment,” “The Sean Hannity Show” and “The Tom Joyner Morning Show,” as well as music formats.
Through a 10-year licensing agreement, Citadel Communications will deliver ABC News Radio programming to terrestrial radio stations. Disney will continue to retain rights to deliver ABC News content in other formats such as broadband, wireless and satellite.
ESPN Radio and Radio Disney are not part of the transaction.
Both the FCC and Justice Department will review the deal for antitrust matters. The transaction is also subject to the receipt of a tax ruling from the Internal Revenue Service, a tax opinion from Dewey Ballantine LLP and other closing conditions. Affiliates of Forstmann Little & Co., holding approximately 67% of the shares of Citadel Broadcasting, have approved the transaction.
What Citadel Gets and What It Becomes
What Citadel Gets and What It Becomes
