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Clear Channel agrees to $19 billion takeover
- Thread starter DashRiprock
- Start date
P
pdwips
Guest
Re: This Just In: ClearChannel sold!
AP-Clear Channel URGENT
SAN ANTONIO (AP) - Radio station giant Clear Channel
Communications has agreed to be purchased by an investment group
for 18-point-seven (b) billion dollars.
Clear Channel said the deal calls for a group led by Thomas H.
Lee Partners LP and Bain Capital Partners LLC to pay $37.60 in cash
for each share of Clear Channel common stock.
The buyers are also assuming about $8 billion in debt in the
deal.
Clear Channel announced in late October that its board of
directors was evaluating "strategic alternatives to enhance
shareholder value."
AP-Clear Channel URGENT
SAN ANTONIO (AP) - Radio station giant Clear Channel
Communications has agreed to be purchased by an investment group
for 18-point-seven (b) billion dollars.
Clear Channel said the deal calls for a group led by Thomas H.
Lee Partners LP and Bain Capital Partners LLC to pay $37.60 in cash
for each share of Clear Channel common stock.
The buyers are also assuming about $8 billion in debt in the
deal.
Clear Channel announced in late October that its board of
directors was evaluating "strategic alternatives to enhance
shareholder value."
P
pdwips
Guest
Re: This Just In: ClearChannel sold!
AP-Clear Channel URGENT
SAN ANTONIO (AP) - Radio station giant Clear Channel
Communications has agreed to be purchased by an investment group
for 18-point-seven (b) billion dollars.
Clear Channel said the deal calls for a group led by Thomas H.
Lee Partners LP and Bain Capital Partners LLC to pay $37.60 in cash
for each share of Clear Channel common stock.
The buyers are also assuming about $8 billion in debt in the
deal.
Clear Channel announced in late October that its board of
directors was evaluating "strategic alternatives to enhance
shareholder value."
AP-Clear Channel URGENT
SAN ANTONIO (AP) - Radio station giant Clear Channel
Communications has agreed to be purchased by an investment group
for 18-point-seven (b) billion dollars.
Clear Channel said the deal calls for a group led by Thomas H.
Lee Partners LP and Bain Capital Partners LLC to pay $37.60 in cash
for each share of Clear Channel common stock.
The buyers are also assuming about $8 billion in debt in the
deal.
Clear Channel announced in late October that its board of
directors was evaluating "strategic alternatives to enhance
shareholder value."
K
knozall
Guest
Oh this is great. A company under investigation for anti-trust violations gets into radio. When will it end?
Re: This Just In: ClearChannel sold!
All Access had the best info on this story as of 10AM...
CC must be giving up on the idea that the FCC is going to let them continue their Ponzi scheme of buying more and more stations in an attempt to create a radio monopoly. I guess they didn't like the election results, huh?
This may be the best news possible for listeners in small markets. CC's attempt to feed them syndicated streams from larger markets, instead of serving the LOCAL audience, has left them underserved, and uninterested.
With luck, those stations will be sold to local groups who want control of their local media back. I also think that those groups will NOT overpay, and that CC will lose money on those stations. CC will get the tax write-off, and the local groups will pay a price that allows them to hire local people and rebuild the audience.
As far as the rest of the deal goes, CC goes private, allowing them to restructure out of the public eye. They'll ultimately raise their profitability once they take a serious hit from dumping underperforming properties that they shouldn't have purchased in the first place. Within five years, they'll go public again, looking to stick their hands into YOUR pocket one more time.
All Access had the best info on this story as of 10AM...
CC must be giving up on the idea that the FCC is going to let them continue their Ponzi scheme of buying more and more stations in an attempt to create a radio monopoly. I guess they didn't like the election results, huh?
This may be the best news possible for listeners in small markets. CC's attempt to feed them syndicated streams from larger markets, instead of serving the LOCAL audience, has left them underserved, and uninterested.
With luck, those stations will be sold to local groups who want control of their local media back. I also think that those groups will NOT overpay, and that CC will lose money on those stations. CC will get the tax write-off, and the local groups will pay a price that allows them to hire local people and rebuild the audience.
As far as the rest of the deal goes, CC goes private, allowing them to restructure out of the public eye. They'll ultimately raise their profitability once they take a serious hit from dumping underperforming properties that they shouldn't have purchased in the first place. Within five years, they'll go public again, looking to stick their hands into YOUR pocket one more time.
Re: This Just In: ClearChannel sold!
http://business.bostonherald.com/businessNews/view.bg?articleid=167622
"In a separate announcement Thursday, Clear Channel said it plans to sell 448 of its radio stations, all located outside the top 100 media markets in the U.S., and its 42-station television group."
http://business.bostonherald.com/businessNews/view.bg?articleid=167622
"In a separate announcement Thursday, Clear Channel said it plans to sell 448 of its radio stations, all located outside the top 100 media markets in the U.S., and its 42-station television group."
Re: This Just In: ClearChannel sold!
http://news.yahoo.com/s/ap/20061116/ap_on_bi_ge/clear_channel_buyout
http://news.yahoo.com/s/ap/20061116/ap_on_bi_ge/clear_channel_buyout
Re: This Just In: ClearChannel sold!
Quick Katy Bar the Door! lol.... So where does this leave John Hogan?
Quick Katy Bar the Door! lol.... So where does this leave John Hogan?
A
Anyacat
Guest
Re: This Just In: ClearChannel sold!
Right where he is at the moment. John Hogan was a career ad salesman before he became a radio genius--there is always room for a career ad salesman in the world of radio, just ask John Hogan...
RadioStarOne said:
Right where he is at the moment. John Hogan was a career ad salesman before he became a radio genius--there is always room for a career ad salesman in the world of radio, just ask John Hogan...
Re: This Just In: ClearChannel sold!
NEW YORK (MarketWatch) -- Clear Channel Communications Inc., the largest U.S. radio-station owner, on Thursday said it agreed to sell itself to an investor group led by private-equity firms Thomas H. Lee Partners and Bain Capital Partners for $18.7 billion in cash.
The San Antonio, Texas-based Clear Channel also said it plans to sell 448 radio stations in selected small markets as well as its television-broadcasting division, though the buyout isn't conditioned on these sales.
Under terms of the deal, shareholders of Clear Channel will receive $37.60 a share in cash, a 10.2% premium to Clear Channel's Wednesday closing price of $34.12. Shares of Clear Channel (CCU :
Clear Channel Communications, Inc.
News , chart, profile, more
Last: 35.46+1.34+3.93%
10:37am 11/16/2006
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CCU35.46, +1.34, +3.9% ) rose 4.3% to $35.57 in early trading Thursday.
The deal comes a month after Clear Channel put itself up for sale, following years of a stagnating stock price as its radio business struggled to boost ad sales amid competition from the Internet and satellite radio. The Thomas Lee and Bain group's offer reportedly beat out a competing bid from buyout companies Blackstone Group and Kohlberg, Kravis Roberts.
"We are very pleased to announce this transaction which provides substantial value to our shareholders," said Mark Mays, chief executive of Clear Channel said in a written statement.
The deal for carries a total value of $26.7 billion, including $8 billion in debt repayment. It's subject to the approval of Clear Channel's shareholders and regulators. Under the agreement, Clear Channel may solicit competing bids from third parties through Dec. 7, and may negotiate with parties that submit competing proposals by that time until Jan. 5, 2007.
Management will working with Thomas H. Lee Partners and Bain Capital Partners to "continue our business plan to provide exceptional programming to our audiences and value to our advertising partners," he said.
Morgan Stanley, Citigroup and Deutsche Bank as well as Credit Suisse, RBS and Wachovia are acting as financial advisors and providing financing commitments to the private-equity group. Morgan Stanley, Citigroup, Deutsche Bank, Credit Suisse and RBS are also providing equity commitments.
Goldman Sachs is acting as exclusive financial advisor to Clear Channel and Lazard Freres is acting as financial advisor to the special advisory committee. Goldman Sachs and Lazard Freres have each delivered a fairness opinion to the board and its special advisory committee, respectively.
Akin Gump Strauss Hauer & Feld is acting as legal advisor for Clear Channel and Sidley Austin is acting as legal advisor for the special advisory committee
NEW YORK (MarketWatch) -- Clear Channel Communications Inc., the largest U.S. radio-station owner, on Thursday said it agreed to sell itself to an investor group led by private-equity firms Thomas H. Lee Partners and Bain Capital Partners for $18.7 billion in cash.
The San Antonio, Texas-based Clear Channel also said it plans to sell 448 radio stations in selected small markets as well as its television-broadcasting division, though the buyout isn't conditioned on these sales.
Under terms of the deal, shareholders of Clear Channel will receive $37.60 a share in cash, a 10.2% premium to Clear Channel's Wednesday closing price of $34.12. Shares of Clear Channel (CCU :
Clear Channel Communications, Inc.
News , chart, profile, more
Last: 35.46+1.34+3.93%
10:37am 11/16/2006
Delayed quote data
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
CCU35.46, +1.34, +3.9% ) rose 4.3% to $35.57 in early trading Thursday.
The deal comes a month after Clear Channel put itself up for sale, following years of a stagnating stock price as its radio business struggled to boost ad sales amid competition from the Internet and satellite radio. The Thomas Lee and Bain group's offer reportedly beat out a competing bid from buyout companies Blackstone Group and Kohlberg, Kravis Roberts.
"We are very pleased to announce this transaction which provides substantial value to our shareholders," said Mark Mays, chief executive of Clear Channel said in a written statement.
The deal for carries a total value of $26.7 billion, including $8 billion in debt repayment. It's subject to the approval of Clear Channel's shareholders and regulators. Under the agreement, Clear Channel may solicit competing bids from third parties through Dec. 7, and may negotiate with parties that submit competing proposals by that time until Jan. 5, 2007.
Management will working with Thomas H. Lee Partners and Bain Capital Partners to "continue our business plan to provide exceptional programming to our audiences and value to our advertising partners," he said.
Morgan Stanley, Citigroup and Deutsche Bank as well as Credit Suisse, RBS and Wachovia are acting as financial advisors and providing financing commitments to the private-equity group. Morgan Stanley, Citigroup, Deutsche Bank, Credit Suisse and RBS are also providing equity commitments.
Goldman Sachs is acting as exclusive financial advisor to Clear Channel and Lazard Freres is acting as financial advisor to the special advisory committee. Goldman Sachs and Lazard Freres have each delivered a fairness opinion to the board and its special advisory committee, respectively.
Akin Gump Strauss Hauer & Feld is acting as legal advisor for Clear Channel and Sidley Austin is acting as legal advisor for the special advisory committee
Re: This Just In: ClearChannel sold!
So what's next after the deal is approved and the new owners take over?
Who are the new owners and what qualifys them to be in the broadcasting business and who's money are they really using to make the deal?
What does the Clear Channel Board of Directors know that others in the business don't, as it sure didn't take them much time to find and accept this offer to buy? They seem to running as fast as they can to get out of the radio business? Why the rush? Why at this time?
It seems to me that they know something is about to go wrong go wrong go wrong go wrong go wrong go wrong......
448 other stations are not a part of this deal! Where are those stations located? What companies might buy those?
This is going to be fun to see unfold for sure! Let the speculation begin!
So what's next after the deal is approved and the new owners take over?
Who are the new owners and what qualifys them to be in the broadcasting business and who's money are they really using to make the deal?
What does the Clear Channel Board of Directors know that others in the business don't, as it sure didn't take them much time to find and accept this offer to buy? They seem to running as fast as they can to get out of the radio business? Why the rush? Why at this time?
It seems to me that they know something is about to go wrong go wrong go wrong go wrong go wrong go wrong......
448 other stations are not a part of this deal! Where are those stations located? What companies might buy those?
This is going to be fun to see unfold for sure! Let the speculation begin!
A
Anyacat
Guest
Re: This Just In: ClearChannel sold!
I don't think this changes anything, other than that Clear Channel will do what it said it would do in September and divest itself of less profitable stations. Now more than ever, it is vitally important that the FCC give them official blessing to buy more major market stations.
I don't think this changes anything, other than that Clear Channel will do what it said it would do in September and divest itself of less profitable stations. Now more than ever, it is vitally important that the FCC give them official blessing to buy more major market stations.
Sold Out
Clear Channel's business model for small markets is a miserable failure. There are no "economies of scale" to be had in small markets because people who live in small markets don't WANT big city radio. They ignored satellite-fed pap in large numbers, and revenues dropped as a result.
This "sale" is a chance for Clear Channel to clean up its own house without the public snooping about as it could in a publicly-owned company. Investors who got in when the company was selling at $90.00/share will pay the price. Once CC has consolidated into its more profitable markets, and written off the losses from selling stations it overpaid for in smaller markets, they'll be back with an IPO for the "new" Clear Channel. I'll bet it happens within the next five years.
IF the FCC allows them to grab even more stations in major markets, shame on them. I doubt that the new Democratic Congress will be willing to even consider that option. I think that the recent election results are the reason that CC decided it needed to get this deal done NOW.
The top of the broadcasting market is past. New technologies are going to impact radio & television as we know it, and companies that structure themselves as content providers, instead of broadcasters, will succeed. Others will continue to bleed to death slowly as listeners drift off to other technologies.
Clear Channel's business model for small markets is a miserable failure. There are no "economies of scale" to be had in small markets because people who live in small markets don't WANT big city radio. They ignored satellite-fed pap in large numbers, and revenues dropped as a result.
This "sale" is a chance for Clear Channel to clean up its own house without the public snooping about as it could in a publicly-owned company. Investors who got in when the company was selling at $90.00/share will pay the price. Once CC has consolidated into its more profitable markets, and written off the losses from selling stations it overpaid for in smaller markets, they'll be back with an IPO for the "new" Clear Channel. I'll bet it happens within the next five years.
IF the FCC allows them to grab even more stations in major markets, shame on them. I doubt that the new Democratic Congress will be willing to even consider that option. I think that the recent election results are the reason that CC decided it needed to get this deal done NOW.
The top of the broadcasting market is past. New technologies are going to impact radio & television as we know it, and companies that structure themselves as content providers, instead of broadcasters, will succeed. Others will continue to bleed to death slowly as listeners drift off to other technologies.
B
Bob_Hudson
Guest
Re: This Just In: ClearChannel sold!
So how much equity did CC lose over the years since it acquired AM-FM? I seem to recall that the combined worth of those two companies was something like $50-60 million at the time of their "merger." I remember the analysts and CC junkies shouting with glee about how this would be come a $100 stock.
If you want to see how bad they've done, take a look at this chart showing their past five years compared to the NASDAQ and DOW:
http://finance.yahoo.com/q/bc?t=5y&s=CCU&l=on&z=m&q=l&c=&c=%5EIXIC&c=%5EDJI
So how much equity did CC lose over the years since it acquired AM-FM? I seem to recall that the combined worth of those two companies was something like $50-60 million at the time of their "merger." I remember the analysts and CC junkies shouting with glee about how this would be come a $100 stock.
If you want to see how bad they've done, take a look at this chart showing their past five years compared to the NASDAQ and DOW:
http://finance.yahoo.com/q/bc?t=5y&s=CCU&l=on&z=m&q=l&c=&c=%5EIXIC&c=%5EDJI
A
Anyacat
Guest
Re: Sold Out
If you recall, in 2003, the FCC relaxed ownership regs only to be slapped down after Congress was inundated with three million letters from unhappy voters. I don't know if Congress will ride to the rescue again when the FCC does the very same thing in 2007. I do know that FCC promised public hearings, which it did not do in 2003 (Michael Powell said he didn't need hearings) and that so far the public has come out against further relaxation of ownership rules. In August, congressmen sympathetic to Clear Channel, lead by Republican Rep. Fred Upton of Ohio, a member of the House Commerce Committee, wrote to the FCC, claiming that local radio is the public's lifeline during emergencies and times of crisis and therefore the public interest could not be served unless the ownership rules were eliminated or relaxed. See, the public is at risk unless Clear Channel is allowed to buy four more major market stations. I know this makes no sense, but that is the gist of the letter, which was signed by 23 members of Congress (and I should check to see if they are all still members of Congress post-election). The current chair is as committed to consolidation as Powell was.
The only people who have anything nice to say about Clear Channel are its employees, who are well-paid. It could be the rest of us are unreasonable or wrong, or maybe we just hate the way radio has been managed since 1996.
SirRoxalot said:
If you recall, in 2003, the FCC relaxed ownership regs only to be slapped down after Congress was inundated with three million letters from unhappy voters. I don't know if Congress will ride to the rescue again when the FCC does the very same thing in 2007. I do know that FCC promised public hearings, which it did not do in 2003 (Michael Powell said he didn't need hearings) and that so far the public has come out against further relaxation of ownership rules. In August, congressmen sympathetic to Clear Channel, lead by Republican Rep. Fred Upton of Ohio, a member of the House Commerce Committee, wrote to the FCC, claiming that local radio is the public's lifeline during emergencies and times of crisis and therefore the public interest could not be served unless the ownership rules were eliminated or relaxed. See, the public is at risk unless Clear Channel is allowed to buy four more major market stations. I know this makes no sense, but that is the gist of the letter, which was signed by 23 members of Congress (and I should check to see if they are all still members of Congress post-election). The current chair is as committed to consolidation as Powell was.
The only people who have anything nice to say about Clear Channel are its employees, who are well-paid. It could be the rest of us are unreasonable or wrong, or maybe we just hate the way radio has been managed since 1996.
The 448 stations and the TV stations are part of the deal, but the "new" CC intends to spin them off after the sale is completed. They will figure in the total valuation of the company being purchased by the new group.
What will this mean for Clear Channel's international interest's? They have a 50% stake in the Australian Radio Network (ARN), down here. With them being cashed up, and Australian media laws about to change to allow 100% foreign ownership. Could they make a play for full control of this and other companies in other countries?
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