Radio across lower Michigan is about to become super-consolidated with this morning's announcement that Cumulus has officially "entered into a definitive merger agreement to purchase Citadel Broadcasting Corporation, under which Cumulus would acquire all of the outstanding common stock and warrants of Citadel at a price of $37.00 per share. This consideration is payable in cash and shares of Cumulus stock, and values Citadel as an enterprise at approximately $2.4 billion. Citadel owns and operates 225 radio stations in over 50 markets and also operates the Citadel Media business, which is among the largest radio networks in the U.S." The combined operations of Cumulus and Citadel would be about 572 radio stations across 120 markets should the deal get the green light from the government.
In Michigan, the combined Cumulus and Citadel properties would result in a 38 station grouping of stations that would include properties in Detroit, Grand Rapids, Ann Arbor, Lansing, Kalamazoo, Battle Creek, Flint, Saginaw/Bay City, and Toledo, OH -- pending FCC review and approval.
The biggest local downside of this deal will undoubtedly be the likely consolidation of positions in Michigan as Cumulus attempts to leverage the sheer number of stations it will own and markets it will cover in the I-75, I-94, and I-96 corridors.