Google buying Cheap-Channel?

[Bob Olhsson]

Anybody heard anything about this development?

[magicchord]

NO, and there's nothing on the news services about it. This is the last I heard, from Radio Ink:

As negotiations stretched into Tuesday night, a group comprised of private equity firms Providence Equity Partners, Blackstone Group and Kohlberg Kravis Roberts appeared to be taking the lead to strike a deal to acquire Clear Channel. Including debt, the price tag is reportedly in then neighborhood of $18 billion, or about $36 per share. Factoring in assumption of the company's current debt, the price is closer to $26 billion.

According to Financial Times, the chances of a rival bidder that included Bain Capital and Thomas H Lee Partners was weakened when San Francisco-based Texas Pacific Group dropped out.

The potential buyers have arranged for bank financing of about $21 billion, and will pony up about $5 billion in equity money.

If a deal is struck, the Mays family – which founded and runs the company – stand to take a payout of about $1 billion for their 7% ownership stake in the company.


Why would Google want such a company with $8 billion in debt?

[nobby]

They recently bought youtube for about 2 billion, IIRC. Not sure how much capital they have to play with.

There was talk about them buying ebay also, I think.

[jerryskid]

Since I work for a Clear Channel station , I can tell you that there is a deal in the works...but I can't say who, or when....just stay tuned, there's an announcement coming.

[jerryskid]

wow..I just checked my work mail and found this.....

http://www.clearchannel.com/Corporate/PressRelease.aspx?PressReleaseID=1824



and this






http://www.clearchannel.com/Corporate/PressRelease.aspx?PressReleaseID=1825

[G. Hoffman]

and this






http://www.clearchannel.com/Corporate/PressRelease.aspx?PressReleaseID=1825



Holy SHIT!


You know, depending on who buys those stations, this could almost mean a return of real radio to a lot of smaller markets.

It probably won't happen that way, but who knows. We can be optamistic some of the time, can't we?


Gabriel

[jerryskid]

It has it's good sides and bad sides...I was just speaking to my program director and he said that with a big corporation like Clear Channel we have more capiblilities to bring better news and sports (live reports, more local sporting events), due to the fact the big companies have more money to spend than a local owner would....So it seems like it could be a wash.....

[oudplayer]

It has it's good sides and bad sides...I was just speaking to my program director and he said that with a big corporation like Clear Channel we have more capiblilities to bring better news and sports (live reports, more local sporting events), due to the fact the big companies have more money to spend than a local owner would....So it seems like it could be a wash.....

Better news?

Um...

No comment.

[jerryskid]

I should have said better news coverage......sorry....

[G. Hoffman]

I should have said better news coverage......sorry....



Umm, have you ever listened to the news on your channel?

Better than what, exactly?



Gabriel

[jerryskid]

Listen ???....I've produced it ...read it....reported it in the field....what I mean by better is the fact that when there's a big time politician in town...they can afford to pay somebody to be there to report it...or when something news worthy happens ...they can afford to send somebody there to cover it....when it's locally owned usually you can only afford to use the wire and that's it...that's what I mean by better news......

[oudplayer]

If google were to have some influence on these stations, would they potentially be broadcasting google news? That'd be a strange twist... al-Jazeera and Jerusalem Post RSS feeds fighting for the spot once held by the CBS news...