BROADCASTING: Clear Channel radio stations for sale
Twenty-seven North Dakota radio stations are for sale by Clear Channel Communications Inc. In addition to putting 448 stations up for sale, the company is selling its stock to become a privately owned company. That means five Grand Forks Clear Ch...
Twenty-seven North Dakota radio stations are for sale by Clear Channel Communications Inc.
In addition to putting 448 stations up for sale, the company is selling its stock to become a privately owned company.
That means five Grand Forks Clear Channel radio stations could see new ownership: KJKJ-FM 107.5 (KJ 108), KKXL-AM 1440 (Star 1440 AM), KKXL-FM 92.9 (XL 93); KQHT-FM 96.1 (The Fox) and KSNR-FM 100.3 (Cat Country).
Seven Fargo stations also are already pending Federal Communications Commission approval for the sale from Clear Channel to Jim Ingstad Broadcasting: KFGO-AM 790 (The Mighty 790), KDAM-FM 104.7 (The Wolf), KFAB-FM 92.7 (Outlaw Country), KKBX-FM 101.9 (The Box), KRVI-FM 95.1 (The River), KVOX-AM 1280 (The Fan) and WDAY-FM 93.7 (Y-94).
The San Antonio-based Clear Channel plans to sell 448 of its 1,150 radio stations, all located outside the top 100 U.S. media markets, as well as the company's 42-station Television Group.
Grand Forks is ranked as the 288th largest broadcast market in America and Fargo is 223rd, according to Arbitron, a national rating service that collects data on radio audiences similar to the data collected by Nielsen Media Research on television audiences.
The company said in a regulatory filing that it doesn't expect any senior management changes or significant layoffs.
"We're not concerned," said Grand Forks Clear Channel General Manager Pat McLean. "I don't think the average listener would notice the difference."
In his 30 years of radio, McLean has experienced three media buyouts.
The sale of these stations is not contingent on the closing of the company's merger agreement that was announced separately Thursday, the company said.
The board of directors for Clear Channel approved a merger agreement with an investor group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC. The investors would pay $37.60 in cash for each share of Clear Channel stock, which would switch the company from public ownership to two private entities. The merger would cost about $26.7 billion, minus $8.0 billion of debt, bringing the total value to about $18.7 billion.
Clear Channel's shareholders also must adopt the merger agreement.
Since January 2000, Clear Channel stock has fallen from a high of more than $90 a share. But Thursday, the shares jumped $1.24, or 3.6 percent, to close at $35.36 on the New York Stock Exchange after rising to a new 52-week high of $35.88.
The proposed transaction would be one of the biggest deals to take a company private, excluding debt.
The company has until Dec. 7 to solicit competing proposals. Other bids for Clear Channel have been expected from Providence Equity Partners, the Blackstone Group and Kohlberg Kravis Roberts & Co.
Decker can be reached at (701) 787-6754, (800) 477-6572, ext. 754, or email@example.com .