Clear Channel To Buy SFX
Feb. 29, 2000
NEW YORK (AP) _ Clear Channel Communications Inc., one of the nation's biggest broadcasters, is buying SFX Entertainment Inc., a leading concert producer, arena owner and sports promoter, for about $3.3 billion in stock.
The deal announced today would give Clear Channel the chance to use its vast network of radio and TV stations and billboards to promote the thousands of musical, theatrical and sports shows that SFX puts on each year.
Clear Channel, based in San Antonio, Texas, said it will have radio stations and billboards in every market where SFX owns arenas.
Lowry Mays, chairman and chief executive of Clear Channel, said the deal also gives Clear Channel a chance to ``pursue initiatives relating to the Internet and music.''
SFX is headed by Robert F.X. Sillerman, who said it was a ``surprisingly easy decision'' to accept the offer after having watched Clear Channel's growth and stock performance.
``In the ever-expanding world of media and entertainment, the combination of distribution and content is becoming increasingly important,'' he said.
SFX, based in New York, currently owns or operates 120 live entertainment venues in 31 of the top 50 U.S. markets. Its marketing and management business represents more than 650 professional athletes. It also produces and promotes motor sports shows in the United States.
Clear Channel owns or has deals for 867 radio and 19 television stations in the United States. It also has stakes in over 240 radio stations internationally. Clear Channel also operates more than 550,000 billboards.
Under the terms of the agreement, each SFX Class A share will be exchanged for 0.6 shares of Clear Channel common stock while each SFX Class B share will be traded for one share of Clear Channel common stock.
As part of the deal, Clear Channel will also assume about $1.1 billion of SFX's debt.
The deal is expected to be completed early in the third quarter of 2000, subject to the vote of SFX's stockholders, and regulatory approval.
Last fall Clear Channel agreed to acquire AMFM Inc., another major radio operator.