Cumulus to buy Citadel Broadcasting

Cumulus Media is buying Citadel Broadcasting in a $1.7 billion deal that would unite two of the country's largest radio station owners. Cumulus would own 572 radio stations across about 120 U.S. markets once the deal closes. It will remain the No. 2 radio station owner in the U.S. behind Clear Channel, which owns more than 800 stations.

The deal represents a bet that the radio advertising market will continue rebounding. Like other media, radio broadcasters were hard hit in 2008 and 2009 as the recession curtailed the ad spending that generates most of their revenue. An advertising shift to the Internet also siphoned money away from radio stations. But the outlook has been improving modestly as the recovering economy has encouraged advertisers to increase their marketing budgets.