Bid for a piece of Clear Channel

[petertrip]

If you have LOTS of cash, join all of the other firms bidding for Clear Channel. Multiple news agencies say the bid deadline is looming:

http://today.reuters.com/news/artic...2403136_RTRIDST_0_MEDIA-CLEARCHANNEL-BIDS.XML

What will this mean for Houston?

 

[OldGringo]

If you have LOTS of cash, join all of the other firms bidding for Clear Channel. Multiple news agencies say the bid deadline is looming:

http://today.reuters.com/news/artic...2403136_RTRIDST_0_MEDIA-CLEARCHANNEL-BIDS.XML

What will this mean for Houston?

It means nothing for any market. It just means that private investors see higher value in CCU than Wall Street traders do.

 

[Mediafrog+]

It just means that private investors see higher value in CCU than Wall Street traders do.

How does the CC situation compare to the Univision sale? Functionally the same sort of transaction?

 

[kendro]

If you have LOTS of cash, join all of the other firms bidding for Clear Channel. Multiple news agencies say the bid deadline is looming:

http://today.reuters.com/news/artic...2403136_RTRIDST_0_MEDIA-CLEARCHANNEL-BIDS.XML

What will this mean for Houston?

It means nothing for any market. It just means that private investors see higher value in CCU than Wall Street traders do.

Asset value or stock performance?
Anyone here have CCU in their portfolio?

 

[OldGringo]

If you have LOTS of cash, join all of the other firms bidding for Clear Channel. Multiple news agencies say the bid deadline is looming:

http://today.reuters.com/news/artic...2403136_RTRIDST_0_MEDIA-CLEARCHANNEL-BIDS.XML

What will this mean for Houston?

It means nothing for any market. It just means that private investors see higher value in CCU than Wall Street traders do.

Asset value or stock performance?
Anyone here have CCU in their portfolio?

The private equity sources feel radio is undervalued. The market still values agressive growth over consistent cash flow. So radio sufferes... it is not a high growth industry any more. But it pours off lots of cash. So the market values CCU at around 30 a share, because of the growth mode. Private equity investors value it at $40, based on income and valuable assets.

I sold CCU a couple of years ago when it got in the high 40's, after seeing a lot of insiders were selling too. I only own one broadcast stock today...

 

[OldGringo]

It just means that private investors see higher value in CCU than Wall Street traders do.

How does the CC situation compare to the Univision sale? Functionally the same sort of transaction?

Both are going private, so the essence is the same. But in the Univision case, the major shareholder wanted to step down at age 74 and felt that the best value for shareholders was via going private.

 

[kendro]

Whatever CC does finally do, I hope they know their across-the-board empire effects a lot of the music industry. Both directly and indirectly. For the sake of those untold thousands, I hope CC makes good choices in the future.

 

[RadioStarOne]

Re: Bid for a piece of Clear Channel: Interesting tid bits for David

The group buying Clear channel if their bid is successful are expected to pay around $18 Billion or close to $36 dollars per share and assume debt of about "$8 Billion dollars more." Gee, David! I thought you said Clear Channel didn't have any debt to pay? What's up with that?

The equity part of the transaction could be worth up to $5 Billion Dollars and is said to be one of the largest ever! What does that mean david?

Anyone want to guess if these investment groups if successful in buying Clear Channel will keep the company together or will they sell it in pieces? Is the company worth more as a whole or in parts? Think this will get interesting? What do the "Mays" know and when did they know it? What will it be worth if the dollar crashes shortly after the sale to whichever investment group? Warren Buffett is betting that the dollar will crash, anyone think he is right?

 

[OldGringo]

Re: Bid for a piece of Clear Channel: Interesting tid bits for David

The group buying Clear channel if their bid is successful are expected to pay around $18 Billion or close to $36 dollars per share and assume debt of about "$8 Billion dollars more." Gee, David! I thought you said Clear Channel didn't have any debt to pay? What's up with that?

I never said they had no debt. I said they had a low debt to equity ratio, lower in fact than General Electric, one of America's peremiere companies. It is normal for companies to expand unsing someone else's money, because you can "use" the money for 7% to 10% when the returns in radio might be over 20%, which is essentially making loads of money on someone else's dime and risk.

The equity part of the transaction could be worth up to $5 Billion Dollars and is said to be one of the largest ever! What does that mean david?

I believe that means that the buyer may put in up to $5 billion in thier own cash, and borrow the rest which would be $21 billion... this is typical in an LBO. Again, they don't use a lot of their own money.

Anyone want to guess if these investment groups if successful in buying Clear Channel will keep the company together or will they sell it in pieces? Is the company worth more as a whole or in parts? Think this will get interesting? What do the "Mays" know and when did they know it? What will it be worth if the dollar crashes shortly after the sale to whichever investment group? Warren Buffett is betting that the dollar will crash, anyone think he is right?

I think the 80% ownership of CC Outdoor might go to buy down debt and concentrate on the core business. I do think that some of the small market stations will go, as they contribute so little to profits and take management time and resources. Remember, over 30% of all radio billing is in the top 10 markets. This would make the company more streamlined and bring in some cash to pay down a bit of the debt.

The major market clusters are worth more alive than dead, so I do not think we will se sell offs other than the smaller markets and clusters that are not efficient... ones with less than 4 to 5 stations.

 

[kendro]

Merry Christmas Clear Channel Employees!

 

[purpledevil]

And to all a goodnight.