DOJ Approves Clear Channel Sale If Station Divestitures Are Made; Still Waiting On Financing

Another hurdle cleared, but not the big one: The DOJ announced today that it would approve Clear Channel’s (NYSE: CCU) sale to two private equity companies – provided the company divest of radio stations in four markets. In a statement, the Department said that the transaction, as originally proposed, would give the new owners, Bain Capital and Thomas H. Lee Partners, monopoly pricing power in Cincinnati, Houston, Las Vegas and San Francisco. Bain and THL have stakes in competing radio network Cumulus, which is why they would have too much power in these markets. The news comes a few weeks after the FCC voted on a 5-0 basis to approve the deal. Shares of Clear Channel are up nearly 5 percent after hours, but there’s still a yawning gap between the current market price and the $19.5 billion offering price, as fears persist that the financing will not come through to make the deal happen.

Statement

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