Clear Channel’s $26.7 Billion Buyout Approved 5-0 by FCC
Clear Channel’s $26.7 billion takeover was approved 5-0 by FCC commissioners, agency sources said late Wednesday. The vote came despite concern over the deal by Commissioner Michael Copps, who’s expected to express his misgivings in a separate statement issued when the order is released, perhaps within weeks, said agency and industry officials. Copps probably dissented in part or concurred, the sources said. He was the last commissioner to vote for the deal, casting his ballot Tuesday, two FCC sources said. An FCC spokeswoman declined to comment.
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The other Democratic commissioner, Jonathan Adelstein, voted for the deal, a broadcast lawyer said. Copps has voiced concern about leveraged buyout firms taking over publicly traded companies. He voted against Clear Channel’s sale of its TV stations to Providence Equity Partners for more than $1 billion. That deal hasn’t been completed because the buyer seems to be renegotiating the price and other terms, industry lawyers said. A Clear Channel spokeswoman said she couldn’t comment right away.
Nov. 8 FCC Chairman Kevin Martin circulated an order approving Clear Channel’s sale (CD Nov 13 p3). His colleagues didn’t vote quickly on it, occupied as they were by media ownership and other priorities, agency and industry sources said. Commissioners began voting on the deal in December, said an agency source.
Bain Capital and Thomas H. Lee Partners agreed to buy the broadcaster in November 2006 in a deal whose value included assumption or repayment of $8 billion in debt. Clear Channel has continued making separate agreements to sell many of its radio stations in markets smaller than the 100 largest. The leveraged buyout firms aim to buy Clear Channel after it has agreed to sell properties in smaller markets.