Clear Channel Sale

[B.B. Lean]

So what are the ramifications of this CC sale doesn't go through? What happens next in San Antonio? Any thoughts?

 

[SirRoxalot]

Clearvoyance?

Well, let's see what's happened since the "sale" was announced:

1) Clear Channel spun off a bunch of small market stations, which leaves them with a leaner company that's focused on bigger markets.

2) Hundreds of jobs were cut nationwide, and the cuts were blamed on Lee & Bain instead of Clear Channel management.

3) They've spun off their TV stations for a lot more money than the sale was expected to bring.

4) They'll get a chunk of the $500-$600-Million in penalties if the banks back out of the deal. Even the lawyers' fees shouldn't eat up all of that.

5) Stock will likely fall into the $25-$26 dollar range, which still leaves the Mays family with a huge load of money. Investors who got in prior to 1997 will still be happy. Investors who got in from the time when the stock hit it's peak in December of 1999 until last year won't be so happy.

I'm guessing that it won't mean the end of the company, that the Mays family will still live well, and that radio programming won't improve in the near future. CC may re-hire some of the talent hatcheted in the recent bloodbath - at a reduced payscale, of course.

 

[TomT]

They still have way too many stations--and many of these markets have been "departing" since late 2006.