Sale of ABC Radio
Through the 1980s and 1990s, as radio's music audience continued to drift to FM, many of ABC's heritage AM stations—the powerhouse properties upon which the company was founded, like WABC New York and WLS Chicago—switched from music to talk. While many of ABC's radio stations and network programs remained strong revenue producers, growth in the radio industry began to slow dramatically after the dot-com boom of the early 2000s and the consolidation that followed the Telecommunications Act of 1996. In 2005, Disney CEO Bob Iger sought to sell the ABC Radio division, having declared it a "non-core asset." On February 6, 2006, Disney announced that all ABC Radio properties (excluding Radio Disney and ESPN Radio) would be spun off and merged with Citadel Broadcasting Corporation. In March 2007 the Federal Communications Commission approved the transfer of ABC's 24 radio station licenses to Citadel; the $2.6 billion merger closed on June 12, 2007. ABC News – a unit of the ABC Television Network – continues to produce ABC News Radio, which Citadel has agreed to distribute for at least ten years.
With the sale of ABC Radio, ABC became the second heritage American television network to sell its original radio properties. NBC sold its radio network to Westwood One in 1987, and its stations to various companies through 1988. CBS is now the only broadcast television network with its original radio link, though both Fox News & Fox Sports (through Clear Channel Communications) and CNN (via Westwood One) have a significant radio presence.
On March 10, 2011, Cumulus Media announced that it would purchase Citadel Broadcasting. After receiving conditional regulatory approval from the Department of Justice and the Federal Communications Commission, the deal was approved by Citadel shareholders on September 15, 2011. The merger of the two companies closed on September 16, 2011, and Citadel became an indirect wholly owned subsidiary of Cumulus Media.
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