Cumulus Media Inc. announced it has entered into an agreement to purchase Citadel Broadcasting Corp. for $37 a share.
When the deal closes, expected by year-end, Cumulus acquires Citadel’s 225 O&Os, plus the former ABC Radio network, now part of Citadel Media.
Citadel Media has a significant presence in the Hispanic market through shows incuding Conexion Thalia Radio Show and Tu Vida es Tu Vida con Maria Marin. It also has a partnership with Terra to develop online brand extensions of its radio portfolio. After buying Citadel Communications, Cumulus will own 572 radio stations across 120 markets. It will be interesting to see how the Hispanic strategy of the combined entity evolves.
Cumulus Chairman/CEO Lew Dickey said the deal gives his company a “vastly expanded national footprint” with the “scope and financial strength necessary to make critical investments in content and technology necessary to compete in today's rapidly evolving media landscape.”
Terms were not announced for the combination cash/stock deal, though the parties said Citadel was worth about $2.4 billion.
Other details, such as a management structure, have yet to be announced; more details are likely to be forthcoming in an analyst call today.
Cumulus said in the announcement the deal would provide the broadcaster some $50 million worth of “synergies” and an “optimal platform for further consolidation and increased vertical integration.”