By Lisa Kerner
Charlotte, N.C., April 20 - Clear Channel Communications, Inc. entered into a definitive agreement to sell its Television Group, which includes 56 stations, to Providence Equity Partners Inc. for about $1.2 billion.
The sale includes the stations' associated web sites, the Television Operations Center, and Inergize Digital Media, which manages the Television Group's online and wireless initiatives.
Clear Channel said it expects the transaction to close in the fourth quarter of 2007 and estimates net proceeds from the sale of about $1.1 billion.
"This is a rare opportunity to acquire a premier collection of broadcast television stations with strong positions in many attractive markets across the United States," Al Dobron, a managing director of Providence Equity, said in a company news release.
Regarding the sale of its 446 radio stations, Clean Channel said it entered into definitive agreements to sell 161 radio stations in 34 markets for a total consideration of about $331 million. These transactions are slated to close during the second half of 2007, providing the company with net proceeds of about $300 million.
On April 18, Clear Channel announced an amended merger agreement with a private equity group co-led by Bain Capital Partners, LLC and Thomas H. Lee Partners, LP. The investor group will acquire Clear Channel for $39.00 per share, up from $37.60 per share.
The company's shareholders will vote to approve the agreement, which is separate from the radio and TV deals, as well as the merger, at the special meeting scheduled for May 8.
Providence Equity Partners is a global private equity firm specializing in equity investments in media, entertainment, communications and information companies with offices in New York and London.
Clear Channel is a global media and entertainment company based in San Antonio.
| Acquirer: | Providence Equity Partners Inc.
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| Target: | Clear Channel Communications, Inc. Television Group
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| Transaction total: | $1.2 billion
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| Announcement date: | April 20
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| Expected closing: | Fourth quarter of 2007
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| Stock price for target: | NYSE: CCU: $35.96 on April 19
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