Clear Channel finds buyer for TV stations
Cory Bergman April 20th, 2007
Clear Channel will sell its television group to Providence Equity Partners for $1.2 billion. The 56 stations (includes 18 digital multicast stations) span 24 markets. “This is a rare opportunity to acquire a premier collection of broadcast television stations with strong positions in many attractive markets across the United States,” said Providence Equity managing director Al Dobron. Back in November, Clear Channel announced it was being acquired by private equity firms Thomas H. Lee Partners and Bain Capital. At the same time, Clear Channel said it would put its TV stations up for sale. Press release…
PRESS RELEASE — SAN ANTONIO – April 20, 2007 – Clear Channel Communications, Inc. (NYSE:CCU) announced today it has entered into a definitive agreement to sell its Television Group to Providence Equity Partners Inc. for approximately $1.2 billion. The sale includes 56 television stations (including 18 digital multicast stations) located in 24 markets across the United States. Also included in the sale are the stations’ associated Web sites, the Television Operations Center, and Inergize Digital Media, which manages the Television Group’s online and wireless initiatives. The transaction is expected to close in the fourth quarter of 2007, subject to regulatory approvals and other customary closing conditions.
Commenting on the transaction, Mark Mays, Chief Executive Officer of Clear Channel said, “The stations and management of Clear Channel Television have established an outstanding record of achievement, innovation and community service in broadcasting and web development. While we will miss the important role they have played in the Clear Channel family, we are excited that they will be partnered with Providence Equity to continue to pursue growth opportunities in the rapidly changing media environment.”
“This is a rare opportunity to acquire a premier collection of broadcast television stations with strong positions in many attractive markets across the United States,” said Al Dobron, a Managing Director of Providence Equity. “We are pleased to again partner with Sandy DiPasquale to create value at these local broadcasting stations and identify additional potential high-quality television opportunities.”
“These are well run, quality television stations,” said Sandy DiPasquale, a veteran broadcast executive and the President and CEO of BlueStone Television. “I look forward to continuing my partnership with Providence Equity and working with the talented CCTV employees to build on their success integrating broadcast and internet services to serve their communities.”
The Television Group currently consists of ten CW, eight FOX, seven NBC, six ABC, six CBS, four My Network TV, two NBC Weather Plus, two Telemundo, five independent stations, and six stations affiliated with Clear Channel’s Variety Television Network (VTV). A chart of the individual broadcast properties, by location and network affiliation, is attached below.
Clear Channel estimates net proceeds after-tax and after customary transaction costs will be approximately $1.1 billion for the Television Group. Information on the treatment of tax loss carry forwards relative to this sale is provided below.
6 Comments Add your own
1. invitedmedia | April 20th, 2007 at 10:01 am
in answer to david johnson’s ? a few posts down: “what wall street values”…
an website unheard of in 2005 sells for $1.6B in 2006.
an ad house that survived the dot-com crash sells last week for >$3B.
56! yes, 5-6 stations sell for less.
2. Gordon | April 21st, 2007 at 3:08 pm
That 56 number is a little misleading….there are only 41 actual licenses involved. The others are mutlicast digital channels. Still, it’s an est. 15 x cash flow (their numbers)which is still pretty decent for a TV company with a lot of CW and Indy stations……
3. invitedmedia | April 22nd, 2007 at 7:46 am
hhmmm.
is T-H-A-T michael powell, T-H-E michael powell?
ya’ know, the one from the fcc who said something like they concluded the internet should pretty much replace broadcast tv back around 1994?
interesting.
feel free to correct me if i’m wrong.
4. gordon | April 22nd, 2007 at 8:40 pm
are you asking if I’m MP? if so, no, not even close….just a lowly TV employee…..and I’m not arguing your point, I tend to agree…..I’m just saying that’s a pretty decent price….and no, TV stations can no longer print money anymore like the glory days and never will again but most still make money…..for how much longer? I’ll leave that for others to ponder…
5. invitedmedia | April 23rd, 2007 at 4:39 am
no, no, no…
michael powell appears to be a managing partner in providence equity.
sorry for the misunderstanding.
6. Gordon | April 23rd, 2007 at 3:52 pm
You are correct about that Michael Powell…
The Honorable Michael K. Powell served as Chairman of the Federal Communications Commission at a time of revolutionary change in technology and communications. Prior to joining Providence as a Senior Advisor in 2005, Mr. Powell spent over seven years as an FCC Commissioner, and was Chairman of the FCC from January 2001 to March 2005.
As Chairman, he focused on initiatives that encouraged market-driven solutions that promoted consumer interests and drove innovative approaches to getting broadband technology out to people - such as broadband over power lines, WiFi Hotspots, cable broadband and DSL. Chairman Powell clearly saw the importance of the rise of digital technologies and the impact they would have on our lives, from health care to education.
Chairman Powell previously served as the Chief of Staff of the Antitrust Division in the Department of Justice. Prior to that, Mr. Powell was an associate in the law firm of O’Melveny & Myers LLP, and just prior to joining the firm clerked for the Honorable Harry T. Edwards, Chief Judge of the U.S. Court of Appeals for the D.C. Circuit.
Before starting his legal career, Mr. Powell served as a policy advisor to Secretary of Defense, Richard B. Cheney. In addition, his experience includes military service as an armored cavalry officer in the U.S. Army.
Mr. Powell graduated from the College of William and Mary and earned his J.D. from Georgetown University Law Center. Mr. Powell is Chairman of the MK Powell Group and serves as Vice Rector of the Board of Visitors of the College of William and Mary. Mr. Powell also serves on the boards of ObjectVideo, the Rand Corporation, and the board of advisors for the Disabled Veterans for Life Memorial effort.
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