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FOR IMMEDIATE RELEASE TUESDAY, JULY 18, 2000 WWW.USDOJ.GOV |
AT (202) 514-2007 TDD (202) 514-1888 |
JUSTICE DEPARTMENT REQUIRES CITADEL COMMUNICATIONS
CORP. TO
DIVEST 3 MICHIGAN RADIO STATIONS Divestitures Preserve Radio Advertising
Competition in Saginaw, Michigan Area WASHINGTON, D.C. -- The Department of Justice today announced that
Citadel Communications Corporation has agreed to divest three central
Michigan radio stations after the Department expressed antitrust concerns
about Citadel's acquisition of radio stations from Liggett Broadcast
Inc.
If the transaction had been allowed to proceed as initially proposed,
Citadel would have controlled more than 60 percent of radio advertising
revenues in Saginaw, Michigan reducing competition for radio advertising
in that area.
Citadel proposed to acquire WTCF-FM and WHNN-FM from Liggett. Citadel
currently owns six radio stations -- WGER-FM, WSGW-AM, WIOG-FM, WKQZ-FM,
WYLZ-FM, and WILZ-FM -- in the Saginaw market.
"The sale of these three stations will ensure that businesses that
buy radio advertising time in the Saginaw market will continue to have
the benefits of competition, including lower prices and better services,"
said Joel I. Klein, Assistant Attorney General in charge of the Department's
Antitrust Division.
The three stations -- WGER-FM, WTCF-FM and WSGW-AM -- will be sold
to Wilks Broadcasting, LLC, a new entity being created by The Wicks
Group. The Wicks Group is a private equity firm based in New York, New
York.
Citadel is a Las Vegas-based radio broadcasting company that, upon
completion of pending transactions, will own or operate 211 radio stations
in 45 markets. Its 1999 revenues were approximately $178 million.
Liggett, based in Lansing, Michigan, owns 9 stations in 3 Michigan
cities. Its 1999 revenues were approximately $22 million.
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