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overview
landmarks
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overview
This
profile considers US radio broadcaster Citadel Communications
Corporation.
It covers -
introduction
As of June 2005 Citadel was the fifth largest radio broadcasting
company in the US, based on net broadcasting revenue.
It owned and operated 155 FM and 58 AM radio stations
in 47 markets located in 24 states across the country,
with its top 25 markets accounting for approximately 75%
of revenue. At that it operated one FM station in the
Knoxville market, one FM station in the Oklahoma City
market, four stations in the Muskegon market, six stations
in the Tuscaloosa market and one station in the Birmingham
market under local marketing agreements.
In February 2006 Disney announced
an agreement to merge its ABC Radio stations with Citadel
in a deal that Disney valued at US$2.7 billion. Disney
said it would spin off ABC's 22 radio stations and its
ABC Radio Networks programming arm into a separate entity,
which would then be merged with Citadel to make the transaction
tax-free to Disney shareholders.
The expectation was that Disney shareholders will own
52% of the new company once the deal is completed, with
Disney keeping up to US$1.65 billion in cash. The new
company, to be called Citadel Communications, will own
177 FM radio stations and 66 AM stations.
the group
Citadel was founded in 1984 as as a limited partnership,
Citadel Associates Limited Partnership (CALP).
In 1990 the partners established Citadel Associates Montana
Limited Partnership (CAMLP) to own and operate stations
in Montana formerly owned by CALP. Citadel Broadcasting
Company was incorporated in 1991. The following year it
acquired all the radio stations then owned or operated
by CALP and CAMLP. In June 2001 affiliates of financier
Forstmann Little & Co - a competitor of Hicks Muse
Tate & Furst (HMTF), the
money behind Chancellor and Capstar - acquired Citadel
Broadcasting from its public shareholders for an aggregate
price (including redemption of debt and exchangeable preferred
stock) of around US$2.0 billion.
 next
page (Citadel chronology)
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