Tuesday, March 22, 2011

Radio Mergers & Acquisitions

In all the news about AOL/HuffPo and AT&T/T-Mobile, the report of the third largest radio operator, Cumulus Media, buying the second largest (Citadel Broadcasting) kind of slipped by. 
The combined company will have 572 stations in 120 markets (Citadel owns several in Knoxville).  I'd also interpret the fact that the valuation of the current deal ($2.4 billion) is very significantly higher than the $1 billion offer Cumulus made for Citadel last year is an indication of improving prospects for local radio.

Source: " Cumulus Agrees to Buy Citadel Broadcasting in Deal Valued at $2.4 Billion," Bloomberg.com

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