Las Vegas-based Citadel, the nation’s third-largest radio network operator, owns and operates 225 radio stations in more than 50 markets and also operates Citadel Media. Citadel had confirmed Thursday that it was in talks to sell itself to its larger rival, which is headquartered in Atlanta. Cumulus is the second-largest radio broadcaster in the United States, with 347 radio stations in 67 domestic media markets.
In May Citadel won court approval for its bankruptcy reorganization plan and as recent as December had rejected another takeover attempt by Cumulus. The radio group declined several takeover approaches by Cumulus last year, according to financial news service DealBook, which reports that the December offer was valued at $31 a share, or $2.1 billion.
Citadel, it seems, changed its mind after Cumulus raised its bid to $37 a share, DealBook notes, and the two began exclusive deal negotiations this week. Read more here.
Both companies have cautioned that they may not reach an agreement.
Under the terms of Cumulus’ proposal, the payment received by Citadel shareholders would consist of a combination of cash and Cumulus stock for each Citadel share and warrant, with a fixed exchange ratio. Based upon the proposed cash and stock election formula, the $37 per share consideration would, on average, be capped at a maximum of $30 per share in cash and a maximum of $14 per share in Cumulus stock. Based on actual elections made by Citadel shareholders and subject to proration, each Citadel shareholder could individually receive more or less cash or Cumulus stock than these amounts, up to the $37 per share total.
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written by TheDickies , February 18, 2011 - 07:14 pm
written by TheDickies , February 18, 2011 - 07:14 pm
The Devil lives down in Georgia and he's looking for some more souls to steal! Apparently sucking the life out of their own stations and employees is not enough for them? Don't do it Citadel! You owe it to the well being of your dedicated employees and their families!
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written by Unempirical Observer , February 19, 2011 - 01:07 am
written by Unempirical Observer , February 19, 2011 - 01:07 am
Big Media getting bigger. Gee, what's in it for Lafayette?
How much longer before the consolidated music industry completely implodes? Will they run out of music to program then or will they be forced to find local/regional music as in the past?
I doubt it. Consolidated Radio Media broadcasting can't afford the local talent to find the music.
They'll probably farm all this out to Pandora or some other computer/human aggregator hybrid with one set of national morning show personalities to entertain us.
How much longer before the consolidated music industry completely implodes? Will they run out of music to program then or will they be forced to find local/regional music as in the past?
I doubt it. Consolidated Radio Media broadcasting can't afford the local talent to find the music.
They'll probably farm all this out to Pandora or some other computer/human aggregator hybrid with one set of national morning show personalities to entertain us.
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