Cumulus Media Inc. has formerly announced the acquisition of Citadel Broadcasting Corp. With the completion of the transaction Cumulus added Citadel Media Networks, thumb (the home of syndicated radio shows from Don Imus, viagra Kidd Kraddick, Tom Kent, Perez Hilton, Thalia, Focus on The Family and the ABC and ESPN radio networks) as well more than 200 radio stations. Cumulus Media noted that subsequent to the acquisition, Citadel is its indirect wholly-owned subsidiary. According to Cumulus Media, with the completion of the Citadel acquisition, it is the largest pure-play radio broadcaster in US, and owns or operates more than 570 radio stations in 120 markets and a nationwide radio network serving over 4000 stations.
Cumulus Media expects to pay a total of around $1.418 billion in cash and issue approximately 26.23 million shares of its Class A common stock and warrants to buy 71.68 million shares of its Class A common stock to Citadel security holders in connection with the Citadel acquisition. As a result of the application of the proration procedures, Citadel stockholders and warrant holders who elected to receive cash in the Citadel acquisition will receive, per Citadel share or warrant, as applicable, $30.40 in cash and 1.521 shares of Cumulus Media common stock. Also, Citadel stockholders and warrant holders who elected to receive stock in the Citadel acquisition will receive, per Citadel share or warrant, as applicable, 8.525 shares of Cumulus Media Class A common stock.
The Cumulus-Citadel merger marks the end of a few turbulent years for Citadel that began with its purchase of the ABC Radio Networks and 22 ABC Radio stations in 2006. A later de-listing by the New York Stock Exchange in March 2009 and a Chapter 11 filing later that year, led to speculation that the company was a target for acquisition by 2010.