Update 3/10: The merger is now official. Cumulus will acquire Citadel for $1.4 Billion in cash and 151 Million shares of Cumulus stock.
Original Report 2/17: RadioInk reports that Cumulus Media has purchased Citadel Broadcasting for a reported $2.4 Billion.
The companies holdings overlap in only seven markets and at first glance they may have to spin off as few as only three stations. In Dallas/Fort Worth they own a combined nine stations in the market putting them one over the limit and Nashville where the new entity will own seven FM’s, two over the limit of five per band. There is also potential for spin-offs in the Harrisburg/Lancaster/York area where the company’s 13 stations are split between three market definitions. A similar situation is in Grand Rapids and Muskegon, MI where 8 FM’s and 2 AM’s are split between two markets. If there is enough overlap spinoffs may be required there as well. The only other markets where the companies overlap are Atlanta, Flint, New York, and San Francisco.
The New York Times has more background on the negotiations between the companies.