Cumulus Tries to Acquire Citadel Again

Consolidation may not be dead yet in radio. Cumulus Media, the second largest radio group (in station count) isn’t giving up on its run for Citadel Broadcasting Corp., the third largest group. Going public with its offer, Cumulus confirmed Friday (Dec. 17) that it offered $31 a share for the radio group, valued at $2.1 billion.

Citadel’s board of directors has so far rejected two bids from Cumulus made in November.
Encouraged by R2 Investments, one of Citadel’s lenders who helped the group emerge from bankruptcy in June, Cumulus decided to write to Citadel’s board of directors and make it public.

“We do not understand why you have been unwilling to engage with us to explore such a transaction and to consider its benefits to Citadel and its shareholder[.] In response to increasingly stronger encouragement that we have received from individual Citadel shareholders who have urged us to continue our efforts to combine our companies and thereby deliver substantial and tangible value to Citadel’s shareholders, we write you again,” wrote Lew Dickey, chairman and CEO of Cumulus in a Dec. 16 letter to Citadel’s board of directors.

If the deal goes through, Cumulus (including Cumulus Media Partners), would add 228 stations to its portfolio for a total of 562 stations.