In addition to announcing the deal with Citadel Broadcasting, Disney 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.
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.