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Disney and Citadel complete ABC Radio merger

Indiantelevision.com Team

(13 June 2007 7:30 pm)

MUMBAI: The Walt Disney Company and Citadel Broadcasting Corporation have announced the completion of spin-off with Disney's wholly-owned subsidiary ABC Radio Holdings and its subsequent merger with a wholly-owned subsidiary of Citadel.

Prior to the spin-off, Disney transferred to ABC Radio Holdings its ABC Radio Business consisting of 22 large-market radio stations and the ABC Radio Network. The transaction did not include Disney's ESPN Radio or Radio Disney network and station businesses, states an official release.

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

In addition, prior to the merger, Citadel paid a special cash distribution of approximately $2.46 per share to its pre-merger shareholders who held Citadel common stock as of the record date of 8 June.

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