Disney May Soon Choose Buyer for ABC Radio

Walt Disney Co. may pick a buyer for its ABC Radio assets within a week or two, sources close to the deal said Friday, and Kohlberg Kravis Roberts & Co. and Entercom Communications Corp. may end up bidding against each other to determine a winner.

The protracted sale of ABC Radio has drawn several other bidders, including radio rivals Emmis Communications Corp., Cumulus Media Inc. and Citadel Broadcasting Corp. But Emmis pulled out of the process last year, and Disney eliminated Cumulus after saying its $2.6-billion offer was too low.

Citadel, which is largely owned by private equity firm Forstmann Little & Co., remains in the running.

But several sources said the asset seemed more likely to go to either radio broadcaster Entercom or private equity firm KKR.

ABC Radio’s total value could be $2.6 billion to $2.9 billion, sources said, and one of them believed KKR’s bid was currently higher than Entercom’s.

Burbank-based Disney pondered whether to sell ABC Radio for years before starting up the process last year, and the media giant has moved slowly and somewhat reluctantly in its search for a buyer.

Although the process has reached its late stages, it’s still possible that Disney will choose not to sell ABC Radio.

Disney’s board of directors is expected to meet by Monday to consider buying Pixar Animation Studios, and ABC Radio could be another topic for discussion at the meeting and perhaps even a vote.