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CUMULUS OUT AS ABC BUYER

L

longtimelistener

Report: Cumulus Media Won't Get ABC Radio

Cumulus Media is no longer in the running for Walt Disney Co.'s ABC Radio O&Os and the ABC Radio Networks, after Cumulus Chairman/CEO Lew Dickey Jr. was told by the company that his bid of $2.6 billion for the properties was "hundreds of millions of dollars off." According to Reuters, Dickey said Cumulus was dropped by Disney from the auction process. The news organization also cited sources as saying Citadel, Entercom and private equity firm Kohlberg Kravis Roberts are still in the running. Additionally, Emmis is reportedly no longer in the running for the ABC Radio stations, Reuters said.

While Cumulus' bid was unsuccessful, Dickey told Reuters that Disney will likely find a buyer for the ABC Radio stable, since it's proceeded so far into the sale process. Reuters says Disney is looking to sell the stations and network for a minimum of $2.8 billion. As previously reported, Disney wants to structure any deal as a reverse Morris Trust, where the radio assets would be spun off and merged into the winning bidder's operation. That would give Disney stockholders a 50% stake in the new company and is tax-positive for Disney and the winning bidder.
 
> Report: Cumulus Media Won't Get ABC Radio
>
> Cumulus Media is no longer in the running for Walt Disney
> Co.'s ABC Radio O&Os and the ABC Radio Networks, after
> Cumulus Chairman/CEO Lew Dickey Jr. was told by the company
> that his bid of $2.6 billion for the properties was
> "hundreds of millions of dollars off." According to Reuters,
> Dickey said Cumulus was dropped by Disney from the auction
> process. The news organization also cited sources as saying
> Citadel, Entercom and private equity firm Kohlberg Kravis
> Roberts are still in the running. Additionally, Emmis is
> reportedly no longer in the running for the ABC Radio
> stations, Reuters said.
>
> While Cumulus' bid was unsuccessful, Dickey told Reuters
> that Disney will likely find a buyer for the ABC Radio
> stable, since it's proceeded so far into the sale process.
> Reuters says Disney is looking to sell the stations and
> network for a minimum of $2.8 billion. As previously
> reported, Disney wants to structure any deal as a reverse
> Morris Trust, where the radio assets would be spun off and
> merged into the winning bidder's operation. That would give
> Disney stockholders a 50% stake in the new company and is
> tax-positive for Disney and the winning bidder.
>

All current ABC employees should hit their knees and give profuse thanks because you guys just dodged years of misery
 
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