Announcement Imminent On ABC-Citadel Deal?

[ShadowB]

From R&R

Well-placed moles tell R&R that an official announcement confirming Citadel Broadcasting as the new owner of the ABC Radio assets could come down as soon as Monday, but acknowledge that last minute details could slow the process for a few more days. However, all indications point to it being a done deal, with Citadel emerging as the new owner of ABC's 78 radio stations and a large chunk of its radio network.

Contacted by R&R, ABC Radio spokesperson Julie Hoover declined to comment.

Citadel also did not immediately return a request for comment.

 

[NotSoSilentBob]

Yeah, I heard about this the other day. Something at Citadel drastically changed recently. You don't go from "on the auction block" to buying ABC Radio overnight without something being amiss. I doubt they're only doing this to up the value of the company. Looks to me like they've quickly decided to be a player again.

As to how this affects Nashville...it really doesn't. The only thing I can see happening is 104 switching their national news feed from Fox to ABC.




> From R&R
>
> Well-placed moles tell R&R that an official announcement
> confirming Citadel Broadcasting as the new owner of the ABC
> Radio assets could come down as soon as Monday, but
> acknowledge that last minute details could slow the process
> for a few more days. However, all indications point to it
> being a done deal, with Citadel emerging as the new owner of
> ABC's 78 radio stations and a large chunk of its radio
> network.
>
> Contacted by R&R, ABC Radio spokesperson Julie Hoover
> declined to comment.
>
> Citadel also did not immediately return a request for
> comment.
> <P ID="signature">______________
Bob
Moderator, Nashville board
Radio-Info.com--Always Tuned In

"I don't spread rumors, but I sometimes make outrageous speculations with no factual basis."</P>

 

[jetfli]

> You don't go from "on the
> auction block" to buying ABC Radio overnight without
> something being amiss. I doubt they're only doing this to up
> the value of the company. Looks to me like they've quickly
> decided to be a player again.
>
> As to how this affects Nashville...it really doesn't. The
> only thing I can see happening is 104 switching their
> national news feed from Fox to ABC.

Citadel has not been on the market since being purchased by Forstmann Little. It was "on the auction block" only in the same way any other radio company is -- for sale if the price is right. Speculators, because of the fact it was held by an equity firm, speculated they'd want to unload the company, and competitors and Internet board posters turned those speculations into rumors.

The proposed ABC/Citadel deal in reality is a reverse Morris trust. Disney stockholders would end up owning about 51 percent of the new company and Citadel would control the assests. This would seem like a win/win for the two companies in that Forstmann Little would move from being an equity holder to an investor and manager and Disney would be able to spin off the stations, offer its shareholders value in a new station group, and save $$$ on tax payments. I wouldn't think any other company competing for the ABC stations would have been willing for their company to be merged in such a way.

There may be a bigger effect in Nashville than you think. We won't know until we learn the exact terms of the deal, but at least one analyst believes the deal would include some longterm content agreements with radio properties that remain in Disney's hands. And that could mean some programming fruit basket turnover...

 

[shooterz]

As of Monday Afternoon, it is a done deal... the newly merged company to be named... Citadel Communications...