Disney, Citadel finalize ABC Radio deal

Los Angeles
Biz Journal

On Tuesday, the Walt Disney Co. and Citadel Broadcasting
Corp. completed the deal that saw the transfer of ABC Radio to Citadel.

First, ABC Radio was spun off of Disney, with shareholders
receiving approximately 0.0768 of a share of ABC Radio Holdings common stock
for each share of Disney common stock they held as of the record date of June
6.

Immediately following the spin-off, ABC Radio Holdings
merged with a wholly-owned subsidiary of Citadel. As a result of the merger,
ABC Radio Holdings became a wholly-owned subsidiary of Citadel and Disney
shareholders received one share of Citadel common stock in exchange for each
whole share of ABC Radio Holdings received in the spin-off.

Disney also retained $1.35 billion cash, representing all
of the proceeds of the debt that ABC Radio Holdings incurred prior to the
spin-off.

Among the stations changing hands were KABC-AM and KLOS-FM
in

Los Angeles.
Citadel Communications now has 177 FM and 66 AM stations under its umbrella.

Among ABC Radio’s syndicated radio programs are
Paul Harvey News and Comment, The Sean Hannity Show and The Tom Joyner Morning
Show. Radio Disney and ESPN Radio were not part of the sale.