Clear Channel To Sell 72 Stations
SAN ANTONIO (AP) _ Clear Channel Communications Inc. has reached definitive agreements for the proposed sale of 72 stations in 27 markets in connection with its pending acquisition of AMFM Inc.
The divestiture of stations is aimed at allaying potential antitrust objections to the pending merger, announced last October.
Clear Channel, the nation’s largest radio company, announced last fall it planned to buy AMFM, the nation’s second-largest radio empire, for about $16.6 billion in stock. Executives said they planned to sell 125 radio stations worth about $4.2 billion to head off antitrust concerns from regulators and consumer groups.
The proposed station sales are subject to regulatory approval and are contingent upon the closing of the merger, Clear Channel said in a statement Monday.
Other divestitures are expected to be announced soon.
While Clear Channel did not provide purchase prices for each of the proposed sales announced Monday, Cox Radio Inc. said it was paying $380 million for the seven stations it is acquiring _ four stations in Richmond, Va., and three in Houston.
Infinity Broadcasting said it is paying $1.4 billion for the 18 stations it is buying.
A spokeswoman for Clear Channel did not immediately return a telephone call from The Associated Press.
Clear Channel is creating with its AMFM merger a radio company that will dominate the airwaves nationwide with more than 800 stations after the deal is complete. Last week, Clear Channel announced plans to acquire concert promoter SFX for $2.9 billion in stock.
The combined company is keeping the Clear Channel name and headquarters in San Antonio. Clear Channel also operates 19 television stations and more than 550,000 outdoor advertising displays, including billboards and transit panels around the world.
Shares of Clear Channel fell $4.37 1/2 to $68 in trading at 4:30 p.m. on the New York Stock Exchange as investors reacted to an article in Barron’s business magazine that played down the prospects for the company’s future growth.