Cumulus Media to acquire Citadel Broadcasting for $2.5 billion
11 Mar 2011
Cumulus Media, the second-largest broadcaster in the US, yesterday said that it would buy its rival Citadel Broadcasting Corporation for $2.5 billion including debt in a cash-and-stock deal.
The proposed acquisition will give Cumulus 572 radio stations across nearly 120 US markets, including eight of the top 10. The deal would also bring in synergies of about $50 million.
The deal comes after Cumulus came with a sweetened bid of about $1.73 billion after Citadel had rejected Cumulus' $1 billion takeover offer three months earlier.
Las Vegas, Nevada-based Citadel is the third largest radio group in the US having a national footprint in more than 50 of the nation's leading markets, with 165 FM stations and 58 AM stations.
Citadel also owns and operates Citadel Media (formerly ABC Radio Networks), which creates and distributes programming to more than 4,400 affiliates.
Atlanta, Georgia-based Cumulus is the second largest radio broadcaster in the US, controlling approximately 347 radio stations in 67 US media markets. In combination with its affiliate, Cumulus Media Partners, the company is the fourth largest radio broadcast company in the US based on net revenues.