Ciadel buys ABC

Monday, Feb. 6, 2006
Citadel Merges With ABC Radio

In a deal announced Monday afternoon, the board of directors at Citadel and the Walt Disney Company have approved a deal to combine ABC Radio's 24 owned-and-operated radio stations and the ABC Radio Networks for $2.7 billion. Radio Disney and ESPN Radio O&Os are not included in the transaction.
The newly combined company will take the Citadel Communications name and will be led by current Citadel CEO Farid Suleman. Citadel will now include 243 radio properties in more than 50 markets, and the transaction makes Citadel the third-largest broadcast company in the United States.
The billion-dollar merger involves non-Radio Disney and non-ESPN ABC O&Os including WABC & WPLJ/New York; KABC-AM & KLOS/Los Angeles; WLS & WZZN/Chicago; WJZW, WMAL & WRQX/Washington; WBAP, KSCS & KTYS/Dallas; WKHX & WYAY/Atlanta; WDRQ, WDVD & WJR/Detroit; KQRS, KXXR, WGVX, WGVY & WGVZ/Minneapolis; and KGO & KSFO/San Francisco. Through a 10-year licensing agreement, Citadel will deliver ABC News Radio programming, but ABC parent Disney will continue to distribute ABC News content in other formats such as broadband, wireless and satellite.
Suleman said, "We look forward to welcoming our talented new colleagues at ABC Radio who have a long history of strong market performance, and are eager to work together to integrate ABC's top-notch assets into our new strategically enhanced radio group." Disney CEO Robert Iger added, "Our ABC Radio business represents a premier set of assets that have been exceptionally well-managed. ABC Radio and Citadel are a strong strategic fit."