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January 24, 2006
Disney finally ready to dump ABC Radio
Last summer, the Walt Disney Corp. put its ABC Radio unit on the auction block. The company has named Citadel Broadcasting its preferred bidder, and the two businesses are now in exclusive negotiations. Talks are expected to last up to two weeks, and there is, of course, the possibility that talks fail.This would be something of a coup for Citadel, which owns some 50+ stations, primarily in mid-sized markets -- including four stations in Syracuse and two in Springfield, Mass., as well as stations in Binghamton, Ithaca, Buffalo and Worcester, among others. Among Disney's properties that are up for grabs (and those properties don't include Radio Disney or ESPN Radio), are about 70 stations in markets like Atlanta, Chicago, New York and L.A. That would make Citadel -- despite a relatively small portfolio -- something of a player in the industry.
Let me backtrack. "Small portfolio" is a relative thing. With over 120 stations, including multiple stations that will reach many millions in some markets, Citadel will only have a small portfolio when we're talking Clear Channel, with its 1300 stations, and Infinity (part of the Viacom empire), with some 800. We all know how I feel about big media. It's written all over this blog.
I suppose this is a step in the right direction -- wresting six dozen stations from the hands of Disney (which will likely soon buy Pixar Studios) can only be a good thing, particularly since this is a business Disney doesn't want to be in. Citadel may actually put some energy into the stations, even if it keeps the ABC affiliation for news, weather and sports. This is, after all, what Citadel does.
I don't want to make any predictions as to what happens with these stations, if anything (heck, Citadel may reorganize them a bit then turn around and sell them). I also don't want to jinx the deal, as the stations are better off in Citadel's hands than the hands of some investment firm that doesn't know broadcast radio from cough drops. But this will be one to watch.
Posted by josh at January 24, 2006 06:06 AM
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