Multi-media giant Clear Channel sold
In what represents the third-largest buyout transaction ever, Clear Channel Communications Inc. sold for billions to two private Boston-area investment firms.
Thomas H. Lee Partners LLC and Bain Capital Partners LLC agreed to purchase the San Antonio, TX-based Clear Channel for $18.7 billion plus the assumption or repayment of $8 billion in debt, bringing the total value of the deal to $26.7 billion, or $37.60 a share.
The company said undervalued stock in equity markets led to the decision to go private. Currently, there are no plans for dramatic layoffs or changes at the executive level.
Separately, Clear Channel also announced plans to sell its portfolio of 42 television stations and 448 of the 1,150 radio stations it operates outside of the top 100 market. Locally, Clear Channel owns WSRS-FM and WTAG-AM in Worcester, and WJMN-FM and WXKS-FM, among others, in Boston.
Clear Channel, which also owns several billboards locally though its Clear Channel Outdoor advertising division, can still solicit competing bids from other parties through December 7,
and may negotiate with parties that submit proposals by that time until January 5, 2007. Reportedly, Providence Equity Partners, Kohlberg Kravis Roberts
& Co.
and the Blackstone Group all expressed interest in making bids for the company.
In the days that followed the transaction, Clear Channel was sued in a Texas court for failing to maximize shareholder value, and the plaintiff is seeking damages if the deal goes through as planned.
Clear Channel did not have any comment in the days leading up to the announcement.
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