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Clear Channel Must Divest Vegas stations

Jnavin

Jnavin

The Department of Justice says the merger can't go through until Clear Channel divests stations in 4 cities, including those in Las Vegas. This is because the buyer, Thomas H. Lee, is said to have conflicting ownership issues -- apparently he owns an interest in other local outlets. Which ones? I don't know.

Here's my question: how much is the Clear Channel operation in Las Vegas worth? Who will buy?
 
SAN FRANCISCO (MarketWatch) -- Clear Channel Communications Inc. (CCU:
Clear Channel Communications, Inc
News, chart, profile, more
Last: 29.49-0.05-0.17%
4:02pm 02/13/2008

CCU 29.49, -0.05, -0.2%) will have to divest radio stations in four cities before being acquired for $19.5 billion by a private equity group led by Bain Capital and Thomas H. Lee Partners, the Department of Justice said late Wednesday. The Justice Department is requiring Clear Channel divest radio stations in Cincinnati, Houston, Las Vegas and San Francisco because Bain and Lee own interest in competitors in those cities. End of Story
 
Quoting from the homepage "That secures official Department of Justice approval for the going-private deal, because Justice feels that in those four markets, the "substantial ownership interests" of Bain Capital and Thomas H. Lee Partners would give them too much pricing power. In other words, this isn't just about Clear Channel: it's about the existing positions of Bain and THL in Cumulus and Univision, which compete with Clear Channel."

Clear Channel owns: 93.1 KPLV, 106.5 KSNE, 101.9 KWID, 95.5 KNWR.
Univision owns: 99.3 KRGT, 103.5 KISF, 870 KLSQ.
(Cumulus does not have any stations in Vegas, according to cumulus.com)
 
In the words of Rob Spewak "Bye then" Nice knowing you CC. Now 'NWR will be listenable again.
 
From what I hear, the only station that CC is required to sell is KWID, La Preciosa.
 
Yep, according to trade reports, KWID is the only one. Has something to do with Bain's ownership stake in Univision.

So, KWNR will continue to suck.

LF
 
Any speculation on which company will buy KWID? Has anybody heard any names?

I wonder if the new owner will keep the PRECIOSA format? I would keep the exact same format...It's top 3 25-54, has a low overhead, and serves a fast growing segment of the population.

Plus there really are no holes in the market, especially for adult formats, everything is taken. Although it could be argued that if a new station is better than the pre-existing competitor(s) it could instantly rise to the top even if the format is saturated.
 
You have KVEG and KLUC who are both playing Rhythmic Top 40. I would say there exists a hole for a MAINSTREAM CHR. KKLZ seems to be OK, but in my opinion could be vunerable to a challenger who would put on a similar playlist to WOGL/WCBS-FM/WOCL/KFRC.
 
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