Radio & Television News Association

Thursday, November 16, 2006

Clear Channel Agrees to $19 Billion Lee, Bain Buyout

From Bloomberg News.
By Don Jeffrey and Dana Cimilluca

Nov. 16 (Bloomberg) -- Clear Channel Communications Inc., the largest U.S. radio broadcaster, agreed to a leveraged buyout by Thomas H. Lee and Bain Capital Partners LLC that values the company at about $19 billion.

The firms will pay $37.60 a share, about 10 percent more than yesterday's close, the San Antonio-based company said today in a statement. The company also plans to sell 448 of its 1,150 radio stations and all of its 42 television stations.

Clear Channel put itself up for sale last month after asset sales and share buybacks failed to boost the stock price. The company lost more than 60 percent of its market value since 2000, as radio advertising sales stagnated and listeners migrated to the Internet, satellite radio and iPods. The buyers are betting they can slice costs and stem the slide.

Read the rest of the story here.


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