The wicked witch is dead!!!!

[MusicMan11]

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.
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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

 

[Anyacat]

Far from being dead, the Wicked Witch is very much alive and planning even more wicked witchiness--watch out for those flying monkeys

 

[jpcgonebig]

yep, the wicked witch is now the wicked witch on steroids....good job cc!!

 

[billalm]

Far from it. More money for the suits and less bodies in the studios. If you think the Mays nonsense is done just because they took it private you may wanna think again.

 

[CentralFloridaEagle]

Don't hold your breath. Regardless of what happens, I'm afraid that whoever comes out on top in this deal 1) won't give a rat's ass about the radio business, especially the creative side, and 2) will focus all it's efforts in keeping the bottom line well in the black at all costs.

I wrote a bit for my blog Interstate4Jamming on Friday:

Having worked in the radio industry for 16 years (I've been out of it for over a decade), it was like a breath of fresh air to read about Clear Channel Communications has agreed to be acquired by an investment group for an estimated $18.7 billion. The broadcast equivilent of Wal-Mart owns 1,150 radio stations in markets large and small throughout the nation, but announced Thursday that it would keep it's stations in the top 100 markets and sell 448 stations in smaller markets.

Ever since the Federal Communications Commission relaxed it's rules regarding ownership of stations, companies such as Clear Channel (also known throughout the industry as "Cheap Channel") have sent the industry into a tailspin through it's practice of eliminating much of the local feel and content from it's stations. It has been the primary player in turning talk radio into a hot air baloon of nationally syndicated conservative blow-hards, eliminating diverse voices and in many cases virtually all local content. Many of it's music stations are nothing more than jukeboxes where playlists are determined by national consultants instead of local music directors who know their communities and have a better feel for their listeners' tastes. Remember, what works in L.A. or Detroit doesn't play the same in Melbourne or in Alberquerque, New Mexico.

It's truly sad to see what has happened to the radio industry, and it's certainly no surprise that ipods and downloading music from the Internet have caused radio listenership --- and related revenues --- to take a nosedive. Radio needs to be run by individuals who love and care about the industry, while at the same time working to make it a viable local resource for advertisers and the community at large. The Mays family, who own the largest percentage of CC stock, apparantly didn't.