Cumulus Broadcasting Buys Citadel In $2.4 Billion Deal (updated)

Radio station behemoth Cumulus Media Inc. has closed on a deal to buy rival Citadel Broadcasting Corp. in a $2.4 billion deal ending months of negotiations and creating an even larger national radio conglomerate.

Citadel, which has been in bankruptcy for more than a year, owns radio stations in central Arkansas, including KARN 102.9 FM/920 AM, KIPR 92.3 FM, KURB 98.5 FM, KOKY 102.1 FM, KVLO 102.5 FM, KLAL 107.7 FM, KPZK 101.7 FM and KAAY 1090 AM.

Cumulus owns radio stations in Fort Smith and northwest Arkansas.

Citadel shareholders can choose $37 in cash or 8.525 Cumulus Class A shares for each stock they own. The cash offer is 7.7 percent more than Citadel’s closing price yesterday.

UPDATE: A Stifel-Nicolaus analyst report reviewed by Talk Business suggests that federal regulators may cite anti-competition problems in 5-6 radio markets as part of the Cumulus-Citadel deal. However, those markets listed include: Atlanta, Dallas, San Francisco, Nashville, Harrisburg, Pennsylvania and Flint, Michigan.  Arkansas appears fairly safe for little forced change from the FCC or Dept. of Justice.