Clear Channel Communications has been sold for $19 billion, to private equity firms Bain Capita and Thomas H Lee.
Last week it was rumoured that JCDecaux was on the verge of making a bid for Clear Channel Outdoor, which would have seen it become the world’s largest outdoor advertising company, worth an estimated £12 billion (see
JCDecaux Could Bid For Clear Channel Outdoor).
In a statement, Clear Channel said that under the terms of the agreement, its shareholders will receive $37.60 in cash for each share of Clear Channel common stock they hold, representing a premium of approximately 25% over the company’s average closing share price of $29.99 during the 30 trading days ended October 24, 2006.
Mark P Mays, chief executive officer of Clear Channel, said: “We are very pleased to announce this transaction which provides substantial value to our shareholders.
“We look forward to working with Thomas H Lee Partners and Bain Capital Partners to continue our business plan to provide exceptional programming to our audiences and value to our advertising partners.”
Scott Sperling, co-president of Thomas H Lee Partners, said: “Clear Channel is one of the nation’s truly great companies that has the finest collection of outdoor and radio assets in the industry. We are extremely pleased to be partnered with the management team led by Mark and Randall Mays and to have the opportunity to work with them and to grow this company that was created by its Chairman and founder, L Lowry Mays.
“Clear Channel has tremendous long term growth opportunities in both the radio and outdoor businesses and we look forward to partnering with Mark and Randall to create value in the years ahead.”
John Connaughton, a managing director at Bain Capital, said: “We are very impressed with Clear Channel’s strong management team and the company’s leadership positions in a variety of markets and media formats.
“Clear Channel is an exceptional media franchise that is well-positioned to grow thanks to the solid foundation the Mays family has created. We look forward to partnering with Clear Channel as it continues to innovate in meeting the changing needs of the audiences and advertisers it serves.”
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