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Wouldn't It Be Interesting If The Company That Owns KB Radio Purchases The Company That Used To Own KB Radio
Or has it just been a very long weekend?
PHILADELPHIA, Sept 1 (Reuters) - Walt Disney Co.'s attempts to sell its ABC Radio business are progressing slowly, but the media giant is still in talks with prospective suitors Entercom Communications Corp. Emmis Communications Corp. and Citadel Broadcasting Corp. , according to sources close to the sale process.
Negotiations between Disney and the radio industry rivals have lagged as Disney works to assemble the audited financial data on ABC Radio it needs before asking for final bids. It may take until the middle or end of this month for those results to be compiled, which could push the timeframe by which Disney asks for final offers into late October, sources said.
Burbank, Calif.-based Disney, which has been quietly testing suitors for ABC Radio for months, was disappointed by initial bids that came in below its expectations for $3 billion or more, sources said. ABC Radio's value remains an issue of contention between the parties, these sources said, along with the somewhat complicated structure under which Disney wants to divest the business, meaning a sale is far from certain.
Disney is looking to spin or split off ABC Radio and then merge it into the winning bidder's company. Disney's shareholders would take ownership of half the new company to make the deal tax efficient, sources said.
Disney radio spokeswoman Julie Hoover had no comment when asked whether conditions had changed since Chief Financial Officer Tom Staggs said the company was "in the process of evaluating our strategic alternatives with regard to radio."
Spokespeople for Emmis, Entercom and Citadel did not immediately return calls for comment. The three broadcasters are all thought to be eager to own the assets, and sources expected them to compete formidably with each other.
In the month and a half since the companies lobbed in preliminary bids, Emmis has boosted its financial firepower by selling off nine of its 16 TV stations at better-than-expected prices -- and is in talks to sell the other seven.
Some industry watchers had expected the ABC Radio sale to end before a winner was selected for the radio and cable assets of Susquehanna Media Co., a sale launched this spring.
Susquehanna's progress slowed when Disney began shopping ABC Radio to some of the same potential buyers, but sources said the Susquehanna auction could now end first because those bids are due in about two weeks.
Citadel is pursuing Susquehanna's radio business in the hopes that its offer, combined with whatever bid for the cable assets is highest, will convince Susquehanna to sell the operations separately, sources said.
Private equity firms Providence Equity Partners, Kohlberg Kravis Roberts & Co. and Madison Dearborn Partners have teamed with current and former Susquehanna management to bid for the combined radio and cable businesses.
Cumulus Media Inc. Chairman and CEO Lew Dickey may also lob in a bid backed by money from private equity investors, and Entercom still has one toe in the water, sources said.
Or has it just been a very long weekend?
PHILADELPHIA, Sept 1 (Reuters) - Walt Disney Co.'s attempts to sell its ABC Radio business are progressing slowly, but the media giant is still in talks with prospective suitors Entercom Communications Corp. Emmis Communications Corp. and Citadel Broadcasting Corp. , according to sources close to the sale process.
Negotiations between Disney and the radio industry rivals have lagged as Disney works to assemble the audited financial data on ABC Radio it needs before asking for final bids. It may take until the middle or end of this month for those results to be compiled, which could push the timeframe by which Disney asks for final offers into late October, sources said.
Burbank, Calif.-based Disney, which has been quietly testing suitors for ABC Radio for months, was disappointed by initial bids that came in below its expectations for $3 billion or more, sources said. ABC Radio's value remains an issue of contention between the parties, these sources said, along with the somewhat complicated structure under which Disney wants to divest the business, meaning a sale is far from certain.
Disney is looking to spin or split off ABC Radio and then merge it into the winning bidder's company. Disney's shareholders would take ownership of half the new company to make the deal tax efficient, sources said.
Disney radio spokeswoman Julie Hoover had no comment when asked whether conditions had changed since Chief Financial Officer Tom Staggs said the company was "in the process of evaluating our strategic alternatives with regard to radio."
Spokespeople for Emmis, Entercom and Citadel did not immediately return calls for comment. The three broadcasters are all thought to be eager to own the assets, and sources expected them to compete formidably with each other.
In the month and a half since the companies lobbed in preliminary bids, Emmis has boosted its financial firepower by selling off nine of its 16 TV stations at better-than-expected prices -- and is in talks to sell the other seven.
Some industry watchers had expected the ABC Radio sale to end before a winner was selected for the radio and cable assets of Susquehanna Media Co., a sale launched this spring.
Susquehanna's progress slowed when Disney began shopping ABC Radio to some of the same potential buyers, but sources said the Susquehanna auction could now end first because those bids are due in about two weeks.
Citadel is pursuing Susquehanna's radio business in the hopes that its offer, combined with whatever bid for the cable assets is highest, will convince Susquehanna to sell the operations separately, sources said.
Private equity firms Providence Equity Partners, Kohlberg Kravis Roberts & Co. and Madison Dearborn Partners have teamed with current and former Susquehanna management to bid for the combined radio and cable businesses.
Cumulus Media Inc. Chairman and CEO Lew Dickey may also lob in a bid backed by money from private equity investors, and Entercom still has one toe in the water, sources said.