1999 - Clear Channel, AMFM Plan $56 Billion Radio Merger

Clear Channel, AMFM Plan $56 Billion Radio Merger
Publication: Billboard Bulletin
Date: Tuesday, October 5 1999

In a deal valued at $56 billion, radio group giants Clear Channel Communications and AMFM Inc. have agreed to a merger that will create the largest radio conglomerate in the history of the business. The combined company, to be known as Clear Channel, will embody 830 radio stations in 187 U.S. markets,
equity interests in more than 240 radio stations in 32 other nations, 425,000 outdoor displays in 35 domestic markets and 29 international locales, 19 television stations, and media rep firm Katz Media. The deal also affects the Internet landscape; AMFM has announced a major Web initiative and Clear Channel recently made a $15 million investment in music portal Tunes.com.

The deal--which values AMFM at $23.5 billion and includes the assumption of $6.1 billion of its debt--will likely require the divestiture of 125 radio stations in the U.S. in order to meet Federal Communications Commission ownership guidelines. Clear Channel's Lowry Mays will remain chairman/CEO of the new company; AMFM chairman/CEO Thomas Hicks will serve as vice chairman.

Stock in Clear Channel closed yesterday down 4.82% to $76.50; AMFM shares closed up 2.05% to $65.19.