Clear Channel Accepts $18.7 Billion Buyout Offer From PE Consortium

Clear Channel Communications (NYSE: CCU) is going private — assuming the $18.7 billion deal struck with a private equity consortium sticks. The group led by Thomas H. Lee Partners and Bain Capital won the last-minute scramble by coming in at $37.60 a share — roughly $18.7 billion; the losing group included Providence Equity Partners, KKR and Blackstone Group. The consortium also assumes $8 billion (no, that’s not a typo) in debt, putting the total value of the deal at about $26.7 billion. By either measure, it’s among the largest LBOs ever.Release.
— At the same time, but separately, the company said it is putting 448 radio stations in markets outside the top 100 up for sale and will sell its TV station division. Release.
Could this still come undone? Beyond th usual shareholder and federal approval, the terms allow Clear Channel to solicit and accept competing bids through Dec. 7 but would have to pay a break-up fee.
— Clear Channel was founded by Lowry Mays and his sons Mark and Randall run the company with him. All recused themselves from the vote — although not the discussion — and, after much criticism., agreed to lower change-of-control payouts.
— As our readers well know, Clear Channel has been trying to leverage its pervasive presence across the U..S. into a major digital business. Could going private help? Quite possibly — but we won’t have as many details about their moves.
Dealbook and WSJ have much more.
More to come.

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