ABC Radio Group Sale

[PTBoardOp94]

> Have you seen a list of the ABC/Disney shareholders that
> will retain 52% of the new companies stock? And how many of
> them own shares in both companies? And how many of them will
> sit on the board of the new company? That would be an
> interesting read I'm sure! We shall see!

Citadel is privately owned, so no people can hold stock in both companies (not really true, since technically the handful of people who own Citadel are stockholders in Citadel.)

All Disney shareholders should get some sort of ABC/Citadel stock.

[KMRichards]

> All Disney shareholders should get some sort of ABC/Citadel
> stock.

I stand by my choice of words:  "essentially ends up in a joint venture with the winning bidder", since the new company is co-owned between Disney shareholders and Citadel shareholders.  

You may all quibble as much as you like (Webster, you're particularly good at that, and proved it again ...congrats).  At least I didn't run around claiming that Radio Disney and ESPN Radio was part of the deal.

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[PTBoardOp94]

> I stand by my choice of words:  "essentially ends up in a
> joint venture with the winning bidder", since the new
> company is co-owned between Disney shareholders and Citadel
> shareholders.  
>
Uh...not even close.

joint venture - Definition

"A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise."

Source

It is not a joint venture because Citadel will be responsible for all future programming decisions, profits, and losses.  Usually in a joint venture, executives and project leaders are shared.  Not in this case.

I would call it more of a spin-off, with Citadel buying half the company in the process.