Citadel Broadcasting Signs Merger Agreement with Cumulus Media

Citadel Broadcasting Corporation announced today that it has entered into a definitive merger agreement with Cumulus Media Inc. CMLS under which Cumulus will acquire Citadel in a cash-and-stock transaction.

Under the terms of the transaction, which has been unanimously approved by the Boards of Directors of both companies, Citadel stockholders will have the right to elect to receive $37.00 in cash or 8.525 shares of Cumulus Class A Common Stock for each share of Citadel Common Stock, subject to proration. Holders of warrants to purchase Citadel Class B Common Stock will have the right to elect to have their warrants adjusted to cover the same cash and stock consideration, subject to proration. Based on the closing price of the Cumulus Class A Common Stock on March 9, 2010 of $5.10, the transaction values Citadel as an enterprise at approximately $2.5 billion.