Citadel Looks to Take ION Private

Citadel Looks to Take ION Private

WEST PALM BEACH, January 19: The private equity firm Citadel
Investment Group has made a bid to acquire ION Media Networks, valuing the
company at about $1.4 billion.

The proposal issued to ION today would give the shareholders
of the station group, formerly known as Paxson Communications Corp., $1.41 per
share. Citadel plans to take the company private. NBC Universal, which owns a
minority stake in ION, is supporting the bid. Under the terms of the proposal,
the tender offer would begin once NBC Universal transfers to Citadel its
option, acquired in November 2005, to buy ION stock.

The deal would give Citadel control of a station group that
reaches more than 90 million U.S. homes. ION’s flagship network has been
revamping its programming strategy, acquiring classic series and movies from
the Hollywood studios and from RHI Entertainment. ION is also the majority
shareholder in qubo, the kids’ block and 24-hour channel that it operates with
Scholastic, Corus Entertainment, Classic Media and NBC Universal. ION’s board
says it is considering the proposal.