Disney Radio

Doug Drown vzeej5wn@myfairpoint.net
Sat Jul 16 17:13:08 EDT 2011

I knew about the deal, and knew it was complicated, but didn't know the 
So . . . can we say that Disney/ABC and Citadel/Cumulus are 
structurally related?  They're two different companies, but share 
I'm scratching my brain trying to think of another example of this. 
 I'm not market-savvy.    -Doug

On Sat, 16 Jul 2011 16:33:30 -0400, Garrett Wollman  wrote:
<<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. 
> -GAWollman

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