Deal to Sell Clear Channel for $19 Billion Is Approved

[Joanne98]

Source: NYT

The $19.5 billion sale of Clear Channel Communications to two private-equity firms cleared its final regulatory hurdle Wednesday with approval by the Justice Department’s antitrust division.
The purchase by the equity firms, Thomas H. Lee Partners and Bain Capital, can proceed on the condition that Clear Channel sells radio stations in four cities, the Justice Department said in a statement.

“We are pleased that final regulatory approval has been obtained,” the chief executive of Clear Channel, Mark P. Mays, said in an e-mailed statement. “The merger continues on track for a first-quarter close.”

The private equity firms must now ensure that banks are willing to finance the $39.20-a-share transaction. Credit market turmoil has made it harder for buyout groups to secure financing, and Clear Channel shares have traded as much as 28 percent below the purchase price.



Read more: http://biz.yahoo.com/nytimes/080215/1194746979394.html?.v=18

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I wonder who the private equity firms are?

[Tarc]

1. Bain Capital is Romney's old stomping ground

Or does he still have ties to it? Not sure.

[eleny]

2. The cities are...

"The Justice Department is requiring that Clear Channel divest itself of stations in Cincinnati, Houston, Las Vegas and San Francisco because Bain and Thomas H. Lee own interests in companies that compete with Clear Channel in those cities."

Edited to add from the article: "Clear Channel is also selling 448 radio stations in small and midsize markets."

[Bozita]

3. Bain Capital, Mitt Romney's firm

Maybe Mittens will begin his '12 quest with some air time.

[atreides1]

4. Bain Capital is Willard Romney's firm

Bain Capital LLC is a Boston, Massachusetts-based private equity firm founded in 1984 by Mitt Romney, T. Coleman Andrews III and Eric Kriss; all partners in the consulting firm Bain & Company. Romney was the Governor of Massachusetts from 2003 to 2007. Bain Capital was originally conceived as a combined equity start-up and leveraged buyout fund, an innovative strategy at the time.

[CatholicEdHead]

5. Does this mean the dismanteling of the Clear Channel network?

in the name of short profit? The radio market is pretty bad with most people tuning out due to the repetition and blandness of the content with endless ads.

If other places like the Minneapolis Startribune newspaper or Chrysler get taken over and dismantled, what is next for CC?

[ooglymoogly]

6. Boy, talk about an investment.