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ABC SALE IS OFFICIAL

L

longtimelistener

A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
February 6, 2006 4:29 p.m.

Walt Disney Co. unveiled Monday a $2.7 billion cash-and-stock deal to sell the bulk of its radio assets to Citadel Broadcasting Corp.

The sale agreement with Citadel involves 22 of ABC's 71 stations, in the U.S.'s biggest markets, as well as separate talk and music radio networks. The negotiations don't include ABC-owned stations under the Radio Disney and ESPN brands or the Radio Disney and ESPN networks.

In a joint statement, Disney and Citadel said the newly combined company, to be named Citadel Communications, will be the third-largest radio group in the U.S., with a presence in more than 50 markets.

Following the completion of the merger, Disney shareholders will own approximately 52% of Citadel Communications and Disney will retain up to $1.65 billion in cash depending on the market price of Citadel Broadcasting at the time of closing. Citadel shareholders will own the remaining 48% of the combined company.

The deal, which has been approved by both boards, is expected to close by the end of year.
 
local stations...

So... which local stations are affected?<P ID="signature">______________
"The only thing that sustains one through life is the consciousness of the immense inferiority of everybody else, and this is a feeling that I have always cultivated."
---Oscar Wilde</P>
 
Re: local stations...

Let's hear it. The good. The bad. The ugly. Citadel? Who knows what about them? Who would you rather work for? Cumulus or Citadel?






So... which local stations are affected?
>
 
Re: local stations...

> So... which local stations are affected?
>
WBAP, KSCS & THE TWISTER go in the deal. Disney keeps the Disney AM station and it sounds like they will keep 103.3 ESPN, too.

Odd thing about the deal to me is that Disney will now own over 50% of Citadel.
 
Re: local stations...

> > So... which local stations are affected?
> >
> WBAP, KSCS & THE TWISTER go in the deal. Disney keeps the
> Disney AM station and it sounds like they will keep 103.3
> ESPN, too.
>
> Odd thing about the deal to me is that Disney will now own
> over 50% of Citadel.
>
Which in the long run means that Disney is in the drivers seat although the controls will be in the back seat of the vehicle. Much like Uncle Mel found out after the merger with CBS and prior to the merger with Viacom. Tell them whatever they want to hear in order to get the sale completed! Just like a used car salesperson would to get you to sign the sales contract! Just make sure you read the "Fine Print." Disney Wins all around the table. Oh! By the way Citadel is paying way to much for these radio stations and Disney laughs all the way to the bank. Like I said in the beginning this deal is "Pure Genius" for the folks at Disney! Don't expect any major changes at any of the big stick radio stations like WBAP, WABC, KGO, WLS etc.. ain't going to happen!
 
Re: local stations...

> > So... which local stations are affected?
> >
> WBAP, KSCS & THE TWISTER go in the deal. Disney keeps the
> Disney AM station and it sounds like they will keep 103.3
> ESPN, too.
>
> Odd thing about the deal to me is that Disney will now own
> over 50% of Citadel.
>
its just a merger. I really don't understand this deal.
 
Re: local stations...

> Which in the long run means that Disney is in the drivers
> seat although the controls will be in the back seat of the
> vehicle.

Maybe, maybe not. It depends on who the management is, which the press release indicates will be Citadel, and how much clout Disney actually ends up with. Disney shareholders are the ones who end up with 52% of the resulting company, and that doesn't necessarily mean Disney corporate.
 
Re: local stations...

I hope Citadel leaves their hands off of KGO because KGO has been NO.1 for 26 years straight!






So... which local stations are affected?
> > >
> > WBAP, KSCS & THE TWISTER go in the deal. Disney keeps the
> > Disney AM station and it sounds like they will keep 103.3
> > ESPN, too.
> >
> > Odd thing about the deal to me is that Disney will now own
>
> > over 50% of Citadel.
> >
> Which in the long run means that Disney is in the drivers
> seat although the controls will be in the back seat of the
> vehicle. Much like Uncle Mel found out after the merger with
> CBS and prior to the merger with Viacom. Tell them whatever
> they want to hear in order to get the sale completed! Just
> like a used car salesperson would to get you to sign the
> sales contract! Just make sure you read the "Fine Print."
> Disney Wins all around the table. Oh! By the way Citadel is
> paying way to much for these radio stations and Disney
> laughs all the way to the bank. Like I said in the beginning
> this deal is "Pure Genius" for the folks at Disney! Don't
> expect any major changes at any of the big stick radio
> stations like WBAP, WABC, KGO, WLS etc.. ain't going to
> happen!
>
 
Re: local stations...

Citadel is headed by Farid Suleman. That's Uncle Mel's former CFO from the early-on Infinity days (pre-CBS Radio acquistion.) Could be good, maybe bad...probably not ugly. Like Mel, he's a real "bottom line" kind of guy, with the price of the stock always the most important thing.

> Let's hear it. The good. The bad. The ugly. Citadel? Who
> knows what about them? Who would you rather work for?
> Cumulus or Citadel?
>
>
>
>
>
>
> So... which local stations are affected?
> >
>
 
Re: local stations...

> Let's hear it. The good. The bad. The ugly. Citadel? Who
> knows what about them? Who would you rather work for?
> Cumulus or Citadel?
>
>
>
>
>
>
> So... which local stations are affected?
> >
>
Reminds me when Metro and Shadow merged. It was suppose to be the parent co. of Shadow Westwood 1 buying Metro but the stock swap and the officers in charge effectively put Metro in charge of Shadow.Citadel will run it, and Disney ,akes money.
 
Re: local stations...

> > Which in the long run means that Disney is in the drivers
> > seat although the controls will be in the back seat of the
>
> > vehicle.
>
> Maybe, maybe not. It depends on who the management is,
> which the press release indicates will be Citadel, and how
> much clout Disney actually ends up with. Disney
> shareholders are the ones who end up with 52% of the
> resulting company, and that doesn't necessarily mean Disney
> corporate.

Exactly. It is a reverse Morris Trust, which results in the owners of Disney getting a piece of the resultant corporation, which can then be used to leverage some other deal, like Pixar.

It is not a merger...
>
 
Re: local stations...

> > > So... which local stations are affected?
> > >
> > WBAP, KSCS & THE TWISTER go in the deal. Disney keeps the
> > Disney AM station and it sounds like they will keep 103.3
> > ESPN, too.
> >
> > Odd thing about the deal to me is that Disney will now own
>
> > over 50% of Citadel.
> >
> its just a merger.

No, it is not. It is a Reverse Morris Trust, which shields Disney form capital gains, since they give the stations, but the shareholders get part of the new company tha tis formed. Disney shareholders will own part of Citadel, not Disney.
 
Beat me to it...

Citadel is Farid. My experience is that he'll pay for research and marketing. Just don't ask twice if you blow it. Might trim promotions budgets and support staff. Of course that was then and times have changed since the late 80's, so that might dictate his course. Understands the bottom line like few others, but knows it's investment that brings return.

Jody
> Citadel is headed by Farid Suleman. That's Uncle Mel's
> former CFO from the early-on Infinity days (pre-CBS Radio
> acquistion.) Could be good, maybe bad...probably not ugly.
> Like Mel, he's a real "bottom line" kind of guy, with the
> price of the stock always the most important thing.
>
> > Let's hear it. The good. The bad. The ugly. Citadel?
> Who
> > knows what about them? Who would you rather work for?
> > Cumulus or Citadel?
> >
> >
> >
> >
> >
> >
> > So... which local stations are affected?
> > >
> >
>
 
Re: Beat me to it...

Yup...beat you to it cuz you and I BOTH have had to deal with him lots in the distant past. We have BOTH felt the wrath of Mel (embodied in Farid!)



> Citadel is Farid. My experience is that he'll pay for
> research and marketing. Just don't ask twice if you blow it.
> Might trim promotions budgets and support staff. Of course
> that was then and times have changed since the late 80's, so
> that might dictate his course. Understands the bottom line
> like few others, but knows it's investment that brings
> return.
>
> Jody
> > Citadel is headed by Farid Suleman. That's Uncle Mel's
> > former CFO from the early-on Infinity days (pre-CBS Radio
> > acquistion.) Could be good, maybe bad...probably not ugly.
>
> > Like Mel, he's a real "bottom line" kind of guy, with the
> > price of the stock always the most important thing.
> >
> > > Let's hear it. The good. The bad. The ugly. Citadel?
>
> > Who
> > > knows what about them? Who would you rather work for?
> > > Cumulus or Citadel?
> > >
> > >
> > >
> > >
> > >
> > >
> > > So... which local stations are affected?
> > > >
> > >
> >
>
 
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