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