Cumulus-Citadel merger approved

Cumulus Media says it won regulatory approval for its $2.5 billion takeover of Citadel Broadcasting after the radio broadcaster agreed to shed three stations, according to the Wall Street Journal.

Cumulus, the number two radio-station operator in the country behind Clear Channel Communications, agreed in March to take over number three player Citadel for $2.5 billion in cash-and-stock. Together, the companies own more than 500 radio stations.

MLive reports that the deal folds 10 radio stations owned by Citadel Broadcasting in Grand Rapids and Muskegon plus five owned by Cumulus Media all into the same company.

According to RTT News, the merger remains subject to approval by the stockholders of Citadel, as well as other customary closing conditions.

Cumulus agreed in March to acquire Citadel, which emerged from bankruptcy in June 2010, for $37 per share in cash and shares, valuing Citadel at about $2.4 billion.