Disney Radio

Garrett Wollman wollman@bimajority.org
Sat Jul 16 16:33:30 EDT 2011

<<On Sat, 16 Jul 2011 15:00:17 -0400, "Doug Drown" <vzeej5wn@myfairpoint.net> said:

> Hence ABC's decision to sell its non-Radio Disney O&Os to Citadel.   
> They knew which side their bread was buttered on.    

No, they kept the ESPN stations, too.  And it was actually a bit more
complicated than that, because it was structured as a reverse takeover
for tax reasons: ABC Radio was spun off to Disney shareholders, then
in the next "legal instant" acquired Citadel, with Farid taking over
management of the combined company.  This allowed the transaction to
be tax-free to Disney shareholders.  There was also a huge cash
dividend to Disney at the same time, which was financed by an ABC
Radio debt issue.


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