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Clear Channel sold for $19 billion

G

gordontalk

Guest
SAN ANTONIO, Nov. 16 (UPI) -- Clear Channel Communications Inc., the No. 1 U.S. radio station company, accepted a $19 billion takeover offer from a private
equity
group.

A consortium that includes Bain Capital Partners LLC and Thomas H. Lee Partners LP outbid a rival private equity group by offering $37.50 per share in an
all-cash proposal,
Clear Channel
said Thursday in a news release. Including
debt
assumption the value of the definitive deal rises to $26.7 billion.

The price marks a premium of about 25 percent over Clear Channel's average closing
share price
of $29.99 during the 30 trading days ended Oct. 24, the day before the company acknowledged it was for sale.

Separately, Clear Channel is seeking buyers for 448 radio stations in selected small markets as well as for its television broadcasting division. The Bain
Capital deal, a leveraged buyout, is not conditioned on the consummation of any of these sale transactions.

Besides radio stations, Clear Channel runs a large outdoor advertising business.
 
Exactly. The Mays clan is involved in the buyout and the management structure at the top will remain the same. It's lipstick on a pig boys and girls. Same sh*t, different bankroll.
 
bucwhyl said:
So now what?......
Click to expand...

Nothing will change. The investement group who bought CC will have such large debt service. Lowry and Co still will run the show. They get 1 Billion to still be envolved!

Let's just hope the stations that will be sold will be bought by broadcasters.
 
TheLaffer said:
Let's just hope the stations that will be sold will be bought by broadcasters.
Click to expand...

Since they all seem to be in the most god-forsaken places in America (Shout out to market 273!!!), I'm betting that all the major players won't want to deal with them. There's no 'economies of scale'...
 
They ruin legacy rock stations, homogenize, sanitize, dumb down formats so ratings are in the toilet. The introduce a kludgey digital system that wrecks the bands, isn't popular with listeners --- GOOD RIDDANCE!
 
I wish it was "good riddance". Sorry kids,the Mays will still be around and the lemming of regional VP's will still homoginize the radio landscape. They will make out like bandits on this deal. To quote Lowry Mays thre years ago. " We are not in the radio business, we are providing a service to our clients". Remember when stations had different formats in various markets? Thats changed too, they are called "brands" Blame it on the college kids of the 80's who majored in business. They are the ones ruining things.
 
Well one can hope that since CC won't be answering to Wall St, that things could change for the better. This isn't the kinda deal a group would make to turna round and try and geta return on quickly. CC already cut to the bone to make things look more attractive to suitors. Maybe, juuust maaaaybethe new guys will be able to change SOME things.
 
I knew it was gonna happen.. CC's been hemmoriging money for years and thier stock value was in the toilet.

I doubt CC's sale will impact big market radio and homogenized formats...radio will never be like it was before 1995 again.

But it's hopefully good news to listeners in those small and medium markets who are bored with cookie cutter formats. It will be interesting to see what happens to some of their bigger medium market clusters (like the one in Shreveport). I just hope someone local or some company who gives a damn about good radio buys them...
 
johnqdoe said:
Well one can hope that since CC won't be answering to Wall St, that things could change for the better. This isn't the kinda deal a group would make to turna round and try and geta return on quickly. CC already cut to the bone to make things look more attractive to suitors. Maybe, juuust maaaaybethe new guys will be able to change SOME things.
Click to expand...

The money behind the deal is from private equity firms. So why the may not be answering to 'Wall Street", now they've got to answer to a bunch of multi-millioanires who just bought the company.
In other words, it ain't changing for the better...
 
little1 said:
johnqdoe said:
Well one can hope that since CC won't be answering to Wall St, that things could change for the better. This isn't the kinda deal a group would make to turna round and try and geta return on quickly. CC already cut to the bone to make things look more attractive to suitors. Maybe, juuust maaaaybethe new guys will be able to change SOME things.
Click to expand...

The money behind the deal is from private equity firms. So why the may not be answering to 'Wall Street", now they've got to answer to a bunch of multi-millioanires who just bought the company.
In other words, it ain't changing for the better...
Click to expand...

Roger Daltry sining: "Meet The New Boss . . . Same As The Old Boss . . . ."
Only nobody was fooled the first time....
 
billyg said:
I knew it was gonna happen.. CC's been hemmoriging money for years and thier stock value was in the toilet.

I doubt CC's sale will impact big market radio and homogenized formats...radio will never be like it was before 1995 again.

But it's hopefully good news to listeners in those small and medium markets who are bored with cookie cutter formats. It will be interesting to see what happens to some of their bigger medium market clusters (like the one in Shreveport). I just hope someone local or some company who gives a damn about good radio buys them...
Click to expand...




IS there a "good" radio company????? Cumulus is worse than CC by alla ccounts I've seen & read....Will it be asingle group swoop in and buy these smaller market stations??? WIlls ome go back to mom & pop????
 
billyg said:
I knew it was gonna happen.. CC's been hemmoriging money for years and thier stock value was in the toilet.
Click to expand...

All radio stocks are depressed. Some call it the "Viacom syndrome" because the markets are undervaluing traditional media issues.

Clear Channel is very, very profitable, so much so they started paying dividend in the last year, as well as buying back stock.
 
O.G. wrote: "Clear Channel is very, very profitable, so much so they started paying dividend in the last year, as well as buying back stock."

It's a gravy train! With biscuit wheels!
let's all take a ride!
 
grantchester said:
O.G. wrote: "Clear Channel is very, very profitable, so much so they started paying dividend in the last year, as well as buying back stock."

It's a gravy train! With biscuit wheels!
let's all take a ride!
Click to expand...

Clear Channel knows radio! Let's buy up every radio station we can and pay ridiculous amounts for them! Idaho Falls, Ashtabula Ohio, why not? It's a license to print money! And hey, tell everybody you know to buy stock in Clear Channel! They'll own all of radio someday!

"dot com" companies are very profitable! The sky's the limit on this one! Everyone should buy up their stock now! Ohmigod, the wheels fell off the gravy train!

Sorry, I had a horrible flashback...
 
No more biscuits for you, JD.
And isn't it ironic, that most of the stations CC is keeping are the ones that were rolled up by Gulfstar/Capstar/Chancellor/AMFM, and most of those being sold were the ones snapped up by CC.
g
 
Excellent observation Grant! It would be funny if these sold stations,actually became more successful than their dungeon days at CC.
 
grantchester said:
No more biscuits for you, JD.
And isn't it ironic, that most of the stations CC is keeping are the ones that were rolled up by Gulfstar/Capstar/Chancellor/AMFM, and most of those being sold were the ones snapped up by CC.
Click to expand...

Some are, some aren't. In fact, a large number of them are the product of Randy Michael's attempt to create "regional selling" which never worked because spot radio is not bought regionally.

A good example is Ohio, where Clear had or still has stations in places like Lima, Washington Court House, Sandusky, etc. At one point, CCU heald off on signing a corporate deal with Arbitron until Arbitron created "regional" or state-wide software options to support the state-wide idea. All the Casper, Boise, Idaho Falls type rocky mountain purchases were also intended to create a Rocky Mountain sales combo. Adding Victorville and the Antilope Valley to LA, Santa Barbara, SD, Riverside, etc. was an attempt to do this in The Southland.

None of it worked, there were no economies, and no changes in buying patterns. You sort of (underline "sort of") have to admire them for trying to change the way radio is bought, just as "Less is More" is a good effort to reduce commercials and make shorter unit lengths more popular.
 
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