Disney to sell ABC Radio to Citadel

[Radio1968]

From The New York Times (1/23):

The Walt Disney Company is near a deal to sell its ABC Radio unit to Citadel Broadcasting, the nation's fifth-largest radio broadcaster, for nearly $3 billion, according to people involved in the deal.
After receiving bids last week from several suitors, including Kohlberg Kravis Roberts and Entercom Communications, Disney selected Citadel as the preferred bidder and entered into exclusive negotiations, these people said. A deal would be reached within the next two weeks, these people added, though they cautioned that it was possible the talks could break down and another bidder could be chosen.

link: http://www.nytimes.com/2006/01/23/business/media/23sale.html

 

[FMRadio1]

The interesting thing about this deal is that not all of the unit is being spun off. The Mouse is keeping the ABC Radio news division and Paul Harvey. ESPN Radio, Radio Disney AND their O&O affiliated stations are also not part of the deal. That means 550 in Providence and 1260 in Boston would NOT be sold to Citadel and would keep their respective formats.

Citadel would be buying primarily ABC's FM properties and AM News/Talkers in LA, Detroit, Chicago, New York and a few other markets. Up to this point, they have been a medium to small market operator. Will they use this buy as an entry into the major markets or will they try to swap these properties out to the major operators for more medium market stations?

Mike Thomas

> From The New York Times (1/23):
>
> The Walt Disney Company is near a deal to sell its ABC Radio
> unit to Citadel Broadcasting, the nation's fifth-largest
> radio broadcaster, for nearly $3 billion, according to
> people involved in the deal.
> After receiving bids last week from several suitors,
> including Kohlberg Kravis Roberts and Entercom
> Communications, Disney selected Citadel as the preferred
> bidder and entered into exclusive negotiations, these people
> said. A deal would be reached within the next two weeks,
> these people added, though they cautioned that it was
> possible the talks could break down and another bidder could
> be chosen.
>
> link:
> http://www.nytimes.com/2006/01/23/business/media/23sale.html
>

 

[kenwood]

> From The New York Times (1/23):
>
> The Walt Disney Company is near a deal to sell its ABC Radio
> unit to Citadel Broadcasting, the nation's fifth-largest
> radio broadcaster, for nearly $3 billion, according to
> people involved in the deal.
> After receiving bids last week from several suitors,
> including Kohlberg Kravis Roberts and Entercom
> Communications, Disney selected Citadel as the preferred
> bidder and entered into exclusive negotiations, these people
> said. A deal would be reached within the next two weeks,
> these people added, though they cautioned that it was
> possible the talks could break down and another bidder could
> be chosen.
>
> link:
> http://www.nytimes.com/2006/01/23/business/media/23sale.html
>
>
>
Would nt this be a second time around for ABC to own WPRO and WPRO AM?