BRERALEX
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http://news.yahoo.com/s/ap/20060206/ap_on_bi_ge/disney_2
Disney to Merge ABC Radio Network, Citadel By GARY GENTILE, AP Business Writer
1 hour, 52 minutes ago
LOS ANGELES - The Walt Disney Co. said it will merge its ABC Radio network and 22 stations with Citadel Broadcasting Corp. in a deal valued at $2.7 billion.
Disney and Citadel will form a new company to be called Citadel Communications. Disney shareholders will own approximately 52 percent of the combined entity with Citadel shareholders owning the rest, the companies said Monday.
The deal does not includes Disney's ESPN and Radio Disney network.
The transaction gives Citadel 177 FM stations and 66 AM stations in the country's top markets, making it the nation's third largest radio group.
Disney also reported higher earnings in its first quarter despite a plunge in profits in its studio division.
The media conglomerate said net income rose to $734 million, or 37 cents per share, in the quarter ended Dec. 31, compared with $666 million, or 33 cents per share in the same period last year.
Revenue rose slightly to $8.854 billion from $8.666 billion in the same quarter last year.
The results beat estimates from analysts surveyed by Thomson Financial, which had expected earnings of 30 cents per share on revenue of $8.791 billion.
Disney's studio profits fell 60 percent during the quarter on lower box office results and home video sales. The quarter suffered from a difficult comparison with last year, which saw the DVD release of "The Incredibles" and "National Treasure."
Profits rose 51 percent at Disney's theme parks on the success of the yearlong promotion marking the 50th anniversary of its Disneyland park in Anaheim.
Disney shares rose 1.8 percent in after-hours trading. Earlier, the shares closed down 5 cents at $24.96.
Disney to Merge ABC Radio Network, Citadel By GARY GENTILE, AP Business Writer
1 hour, 52 minutes ago
LOS ANGELES - The Walt Disney Co. said it will merge its ABC Radio network and 22 stations with Citadel Broadcasting Corp. in a deal valued at $2.7 billion.
Disney and Citadel will form a new company to be called Citadel Communications. Disney shareholders will own approximately 52 percent of the combined entity with Citadel shareholders owning the rest, the companies said Monday.
The deal does not includes Disney's ESPN and Radio Disney network.
The transaction gives Citadel 177 FM stations and 66 AM stations in the country's top markets, making it the nation's third largest radio group.
Disney also reported higher earnings in its first quarter despite a plunge in profits in its studio division.
The media conglomerate said net income rose to $734 million, or 37 cents per share, in the quarter ended Dec. 31, compared with $666 million, or 33 cents per share in the same period last year.
Revenue rose slightly to $8.854 billion from $8.666 billion in the same quarter last year.
The results beat estimates from analysts surveyed by Thomson Financial, which had expected earnings of 30 cents per share on revenue of $8.791 billion.
Disney's studio profits fell 60 percent during the quarter on lower box office results and home video sales. The quarter suffered from a difficult comparison with last year, which saw the DVD release of "The Incredibles" and "National Treasure."
Profits rose 51 percent at Disney's theme parks on the success of the yearlong promotion marking the 50th anniversary of its Disneyland park in Anaheim.
Disney shares rose 1.8 percent in after-hours trading. Earlier, the shares closed down 5 cents at $24.96.
