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Citadel Receives $300M Reduction on ABC Radio Deal
Citadel announced yesterday (Thursday) that it had received a $300 million reduction in the price it had initially agreed to pay for ABC Radio.
Citadel had agreed to pay $2.7 billion for ABC Radio in February, but in August claimed that the performance of the ABC stations was not where it was expected to be, causing Citadel to look again at the terms of the deal.
According to Radio Ink, $100 million of the reduction will be a straight reduction in the amount of cash ABC Radio parent Disney will receive after the deal closes. The remaining $200 million will be covered by additional stock in the new company, once the two entities become one.