Clear Channel Accepts $18.7 Billion
The New York Times
Thursday 16 November 2006
Truthout.org Editor's Note: While many may welcome someone else taking over Clear Channel, we need to look at the new players. Bain Capital was founded by current Massachusetts governor Mitt Romney. Bain Capital and Thomas Lee Partners have participated in past takeovers with the Carlyle Group. There is no evidence that the Carlyle Group is involved in this takeover, but Mitt Romney will now have a nice megaphone for his expected presidential run. - smg
The nation's [United States'] largest network of radio stations, Clear Channel Communications, agreed Thursday morning to be bought for $18.7 billion, in a deal that may test private equity's seemingly insatiable appetite for media properties. A consortium that includes Thomas H. Lee Partners and Bain Capital won the bidding with a $37.60-a-share offer, beating out a rival consortium of Providence Equity Partners, the Blackstone Group and Kohlberg Kravis Roberts & Company.
The deal would rank as one of the largest media buyouts ever, surpassing the recent takeover of Spanish-language broadcaster Univision Communications, which a private equity consortium bought for $12 billion earlier this year.
In a press release announcing the transaction on Thursday, Clear Channel put a total value of $26.7 billion on the transaction, including $8 billion in assumed debt. The company's board has unanimously approved the proposed transaction and is recommending that shareholders vote in favor of it, Clear Channel said.