Radio Deal: Cumulus to Buy Citadel Broadcasting
Press release from the issuing company
Friday, March 11th, 2011
Cumulus Media Inc. is buying Citadel Broadcasting Corp. in a $1.7 billion deal that would unite two of the country's largest radio station owners.
Atlanta-based Cumulus would own 572 radio stations across about 120 U.S. markets once the deal announced Thursday closes. It will remain the No. 2 radio station owner in the U.S. behind Clear Channel, which owns more than 800 stations.
The deal represents a bet that the radio advertising market will continue rebounding. Like other media, radio broadcasters were hard hit in 2008 and 2009 as the recession curtailed the ad spending that generates most of their revenue. An advertising shift to the Internet also siphoned money away from radio stations.
