Clear Channel Sold

In a Press Release on the company's web site, Clear Channel announced that it has agreed to a $18.7 Billion buy-out by an investment group lead by Thomas H. Lee Partners LP and Bain Capital Partners LLC. In a separate transaction, Clear Channel will sell off all of it's television properties and over four-hundred of it's radio stations in smaller markets.

What does this mean for Salt Lake City? Radio: Clear Channel operates about a half-dozen stations in the Salt Lake City market including KJMY "My 99.5" (99.5 FM), KNRS "Family Values Talk Radio" (570 AM), KODJ (94.1 FM), KOSY (106.5 FM), KXRV "The River" (105.7 FM), and KZHT (97.1 FM). All of the radio properties will be included in buy-out by Lee Partners and Bain Capital. None of the stations would be included in the 448 radio properties that will be sold off to other buyers, as most of those are located in markets smaller than "top 100." Television: "ABC 4," KTVX in Salt Lake City is operated by Clear Channel. This property is included in sell off to other buyers and will not be acquired by Lee Parters and Bain Capital's private investment group. Timeliness: According to the Associated Press, Clear Channel has until December 7, 2006 to entertain counter-offers. Investment analyst Kit Spring felt that Clear Channel could be worth more money if it were dismantled and sold in pieces. He recommended that stockholders "reject the initial deal." If this occurred, a potential buyout may not be settled until well into next year. Outdoor: Clear Channel's billboard advertising unit was not mentioned in the buy-out. Currently, the AP is calling it "the wild card." Programming: There have been no statements made regarding any changes in on-air programming, from either the company's press release or the Associated Press' article. In 2003 a controlling share of Citadel Communications was purchased by the investment group Forstman Little. In that case, programming changes as a result of the buy-out were almost non-existant.