- Joined
- Jan 3, 2001
Citadel said to be unhappy with Disney deal
Report: Low revenue of ABC radio could force the broadcasting group to pay Disney more. August 21 2006: 5:56 AM EDT
NEW YORK (Reuters) -- Citadel Broadcasting Corp. wants to renegotiate some of the terms of its $2.7 billion deal to buy Walt Disney Co.'s ABC radio business, the Wall Street Journal reported Monday, citing an interview with the chief executive of Citadel.
Citadel, which agreed to buy the business in February, hopes to renegotiate terms of the deal's debt financing amid a 27 percent slide in its stock price.
The original deal comprised stock, valued at the time at about $1.3 billion, and $1.4 billion in cash. But if its shares remain low, it would trigger a clause in the agreement that guaranteed a bigger payout to Disney if Citadel's stock declined significantly, the report said.
But an important reason Citadel's shares have fallen so much is the poor performance of Disney's ABC Radio assets, analysts told the paper.
Even so, new negotiations have not yet started, the article said, citing a source close to the situation.
Neither company could immediately be reached for comment on the report.
Report: Low revenue of ABC radio could force the broadcasting group to pay Disney more. August 21 2006: 5:56 AM EDT
NEW YORK (Reuters) -- Citadel Broadcasting Corp. wants to renegotiate some of the terms of its $2.7 billion deal to buy Walt Disney Co.'s ABC radio business, the Wall Street Journal reported Monday, citing an interview with the chief executive of Citadel.
Citadel, which agreed to buy the business in February, hopes to renegotiate terms of the deal's debt financing amid a 27 percent slide in its stock price.
The original deal comprised stock, valued at the time at about $1.3 billion, and $1.4 billion in cash. But if its shares remain low, it would trigger a clause in the agreement that guaranteed a bigger payout to Disney if Citadel's stock declined significantly, the report said.
But an important reason Citadel's shares have fallen so much is the poor performance of Disney's ABC Radio assets, analysts told the paper.
Even so, new negotiations have not yet started, the article said, citing a source close to the situation.
Neither company could immediately be reached for comment on the report.
