What does a buyout of Clear Channel really mean?

[napi21]

I know they wereowned by a group of fundies, and they're selling off a lot of their small stations, but I don't know anything about this crowd from Boston. Does it mean a freer news market?

http://www.bizjournals.com/atlanta/stories/2006/11/13/daily35.html?f=et50&hbx=e_du

[peacebird]

1. No. The buyers are closely linked with the Carlyle group.

The two buyers have been together in purchases with Carlyle over the last several years. It will likely still be corporate-slanted *news*.....

[napi21]

2. Damn! I guess the only real option is the disolution of the media

monopolies.

God, there are so many things that need to be fixed, it sure can't all be done in 2 years!

[bryant69]

4. There will never be a non corporate slanted news

on a large scale. Because in order to own several stations you almost have to be a corporation.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[LTR]

5. I don't read a whole lot into that

These equity funds all swim in the same waters. It's not too easy to completely avoid one another.

And Carlyle is pretty well known. Kinda hard to avoid them in that subculture.

Nonetheless, I'm glad that Carlyle, rumored to be one of the bidders, was not a finalist (even though George Soros is among their ranks). And I've heard mostly good things about Lee. The other investor, Bain, featured Mitt Romney as one of it's founders, but I don't know what their deal is nowadays.

One thing about these guys is that all that matters is money. Political ideology is often irrelevant.

[I_Make_Mistakes]

3. But that means Carlyle has to now funnel $ down to the lower

participants, right? That means that Carlyle is starting to lose money correct? Think about it.

[Wiley50]

6. It depends how much and quick Shelly Drobney and Mike Newconb

can capitalize Nova M.

Nova M, unlike AA, Nova M's buisness plan is to BUY stations

AA only LEASES stations (which has caused much of their money problems)
and sells PROGRAMMING to stations.
Therefore, they developed no REAL ASSETS

Nova M's plan is to BUY stations
thereby creating ASSETS that can be sold if things go south.

I sure hope Nova M can find some big money Dem investors

QUICK!

This could be a real opportunity for them

[KharmaTrain]

7. The Deal Isn't Done...My Last Post On This Topic

I've put up several posts...(with few responses) on the topic today...and have checked with "sources" with knowledge of what's going on here.

In brief, and probably the last time I'll post on the topic here:

This appears to be a bailout of Clear Channel to save them from being the target of a leverage buyout. Bain proposes selling 458 stations outside the top 100 markets (I put a post in of the markets) as well as their television operations. The goal here is to preserve the company's "stick" values...keeping the prices high on their remaining properties. To do this they would either find a mass buyer...like a Google...who would pick up a majority of those stations or to shut them down.

The announced sale price is a lot higher than the one proposed by KKR and others and the proposed deal could be cancelled as Clear Channel has until Jan. 5th to find someone with a higher offer.

Clear Channel is not owned by fundies. The principals, Loewry Mayes and his son Mark along with Thomas Hicks are booosh pioneers (Hicks was a co-owner of the Texas Rangers). Bain is a company founded by Mitt Romney and had heavy ties to the Carlyle Group...so those who smell a bailout may be correct here.

Salem Broadcasting is the one that is operated by "fundies"...owned by Edward Anslinger. It owns right wing hate stations known as "The Patriot" in most major markets that are funded in part by Salem's other stations that sell blocks of airtime to preachers and their "Fish" format. There's also strong indications of Repugnican money that props that company up so you get to hear the likes of Betaamillion Bennett, Laura Ingraham, Michael Weiner, Hugh Hewitt, Michael Medved and other fetid souls.

How will this shake out? No one knows, but it does indicate a serious problem in radio...one I've pointed out in the discussions about AAR and the depressed ecomonic conditions facing radio today.

I suspect we'll see a lot of stations going dark rather than being sold...the reason being the asking prices on these property will surely be high to maintain the values of the remaining CC and other broadcast properties that will keep the prices high and out of the reach of many smaller operators. It may also signal changes in other companies...most notably CBS, who have previously announced interest in selling radio station in a similar manner to Clear Channel.

Well I posted more than I should...

Here are the post I put up earlier...with links about the sale: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x2732891

Here's a list of the markets that could be sold: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=2734226&mesg_id=2734226

[gaja]

8. I don't know , I heard today it's Carlyle

Thomas H. Lee Partners owns VNU with Carlyle together
http://people.brandeis.edu/~lamiller/lee.html


Thomas H. Lee left in 2006
http://www.altassets.net/news/arc/2006/nz9260.php

NEW YORK (Reuters) - Clear Channel Communications Inc., the No. 1 U.S. radio company, has agreed to be acquired by private equity firms Thomas H. Lee Partners and Bain Capital for nearly $19 billion, a source familiar with the situation said on Thursday.

The bid values Clear Channel, which has about 1,150 radio stations, at $37.60 a share, the source said.

Clear Channel shares rose 4.5 percent to $35.67 in electronic composite trading, after closing at $34 Wednesday on the New York Stock Exchange.

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-11-16T130749Z_01_N16247497_RTRUKOC_0_US-MEDIA-CLEARCHANNEL.xml&src=rss&rpc=23



I don't think it means a free news market