Clear Channel SOLD

As part of its just-announced sale, Clear Channel says it will sell 448 of its total stable of 1,150 radio stations, in a total of 90 markets all outside of market 100. (NOT PITTSBURGH) Note that this is not a total selloff of CC's small-market stations. San Antonio will also sell its 42-station TV group, operating in 24 markets. Combined those radio and TV stations account for less than 10% of Clear Channel revenues. CEO Mark Mays says the selloff will better position Clear Channel going forward. And the action in those 90 markets should keep the radio brokers - and buyers - very busy.

The Clear Channel board of directors agreed to a bid by the private equity firms Thomas H. Lee Partners and Bain Capital for $26.7 billion. Under the terms of the deal Clear Channel can negotiate with any firm offering more through January 5, but would have to pay a breakup fee. The deal still needs the approval of shareholders and regulators.

Not everyone is happy about this. Some of the biggest private equity groups are the target of a class action suit. One of the two deals that sparked the suit is Univision's sale to a group led by Haim Saban. And several of the "P.E." groups that are named - Blackstone and KKR - have been pursuing Clear Channel. The suit filed in New York alleges the plaintiffs conspired to keep selling prices down and thus shortchanged other shareholders.

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