• by Erik Sass  @eriksass1, March 11, 2011

After months of false starts, backpedaling, public wrangling and even a bit of sniping in the trade press, Cumulus Media appears poised to acquire Citadel Broadcasting Corp.

The two companies' directors and shareholders have finally approved the latest terms for the (revised) proposed buyout offer, valuing Citadel at $37 per share. The deal would give Cumulus control of Citadel for $2.4 billion in cash and Cumulus shares. It is supposed to close by the end of this year (provided it clears final barriers including FCC approval).

Assuming that the deal is blessed by government regulators, the Cumulus network will increase from 347 radio stations to 572, with geographic coverage increasing from 67 media markets to 120.

What's not clear is how many of the two companies' current employees will remain on the payroll of the combined entity. Right now, Cumulus employs 2,255 people, while Citadel employs 4,000 -- but there's always the possibility that some positions could become "redundant."

On the one hand, Radio Ink quoted Cumulus CEO and chairman Lew Dickey as suggesting that there were "at least $50 million" of cost savings to be achieved by merging the two companies. But Dickey also struck a reassuring note (implying that current staffing levels would be maintained) with his statement: "I look forward to working together with our 4,000 new team members to build Cumulus into a dynamic and nationwide local media company."

It's also worth noting that Citadel has already wielded the axe pretty aggressively over the last couple of years, as there might not be much left to trim.

As noted, the combined radio group would offer advertisers fairly extensive national reach -- second only to Clear Channel Radio -- covering major markets, including Atlanta, Chicago, Dallas, Detroit, Harrisburg, Houston, Indianapolis, Kansas City, Los Angeles, Minneapolis, Nashville, New York, San Francisco and Washington, D.C.