Citadel Amends Terms of ABC Radio Deal
LAS VEGAS (AP) -- Citadel Broadcasting Corp. said Wednesday it amended the terms of its deal to buy ABC Radio from Walt Disney Co., reducing by $300 million the amount of cash Disney is eligible to receive in the $2.7 billion cash and stock deal.
The acquisition, will combine Disney's 22 ABC radio stations with Citadel's business, resulting in a new company called Citadel Communications with 177 FM stations and 66 AM stations. The deal was announced in February.
Of the $300 million cash reduction, $100 million is an outright reduction in the price. The other $200 million will be covered by additional stock. Of the new stock, issued to Disney holders, $100 million will be issued at $10.40 per share and $100 million will be issued at a price between $10.89 and $14.51 per share.
Disney shareholders will hold a 57 percent stake in the new company. Under the original terms of the deal, they would have had a 52 percent stake.
The deal is expected to close by May 31, 2007.
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LAS VEGAS (AP) -- Citadel Broadcasting Corp. said Wednesday it amended the terms of its deal to buy ABC Radio from Walt Disney Co., reducing by $300 million the amount of cash Disney is eligible to receive in the $2.7 billion cash and stock deal.
The acquisition, will combine Disney's 22 ABC radio stations with Citadel's business, resulting in a new company called Citadel Communications with 177 FM stations and 66 AM stations. The deal was announced in February.
Of the $300 million cash reduction, $100 million is an outright reduction in the price. The other $200 million will be covered by additional stock. Of the new stock, issued to Disney holders, $100 million will be issued at $10.40 per share and $100 million will be issued at a price between $10.89 and $14.51 per share.
Disney shareholders will hold a 57 percent stake in the new company. Under the original terms of the deal, they would have had a 52 percent stake.
The deal is expected to close by May 31, 2007.
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How does this affect Q100?