Outdoor company Clear Channel Worldwide (CCW) is to merge with US media company, Ackerley Group, it was announced today. Ackerley Group holds outdoor, television, radio and interactive media assets. CCW is a global player in the outdoor advertising industry with radio and television stations, outdoor displays and entertainment venues in 64 countries around the world. In the UK, it owns outdoor contractor Clear Channel International, formerly More Group.
Ackerley currently operates over 6,000 outdoor displays in the Boston, Seattle and Portland, Oregon metropolitan markets. It also owns 16 television stations and provides programming and sales for two other television stations, and owns and provides sales for a number of radio stations.
Under the terms of the agreement, Ackerley Group’s shareholders will receive 0.35 shares of Clear Channel Communications for each share of Ackerley Group that they own. The effective cost of the acquisition to CCW is $497 million. The transaction is expected to be completed during the first quarter of 2002 and is subject to the approval of the stockholders of Ackerley Group, the Federal Communications Commission and the Department of Justice.
The deal allows Clear Channel to enter Boston, Seattle and Portland, Oregon – three of the top 25 US outdoor advertising markets. Seattle is also a top 25 US radio market in which the company currently has no presence. “In addition,” says CEO Lowry Mays, “this acquisition enables us to offer our advertising customers more cross-platform advertising opportunities, because we have a radio station, outdoor advertising operation or live entertainment venue presence in 15 of their [Ackerley’s] 18 television markets.”
