Clear Channel Buyout In Trouble (Reuters)
Report: Clear Channel Deal Collapsing (AP)
Clear Channel Deal Is Close to Collapse (WSJ)
Today, one has to feel badly for the employees of Clear Channel--they've had better days. Much better days. After enduring wave after wave of cuts one has to imagine that many were anxiously awaiting the potential closure that the privatization deal promised. Not that there were any guarantees mind you, but certainly the hope of a new chapter. Some were hoping for a payday from their company stock purchases, 401k contributions, and stock options. Something that looks very uncertain now.
Today, one has to feel badly for all of us in the radio business. If this deal ultimately fails, it will hurt our industry--and bad. If the biggest radio company with some of the most famous stations in the US can't make it happen what will be of the value of radio properties across the street?
What do today's events tell us about the future? What will become of the largest group of stations? Will it be business as usual? [Whatever that means in 2008]
Right now, there are more questions than answers, but I suspect we will learn a lot more about what it all means before the "end of the first quarter."
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2 comments:
Harve Alan wrote: "If the biggest radio company with some of the most famous stations in the US can't make it happen what will be of the value of radio properties across the street?"
You might be right but I'm more optimistic. I think most people see this as a reflection of the weakness in the credit markets. This isn't the only leveraged buyout to fall apart in recent months: Sallie Mae, Harman Int'l Industries, Affiliated Computer Svcs., United Rentals and Acxiom have nothing to do with radio.
Not that there isn't current weakness in radio but that was already known.
Clear Channel is a real company with real revenue, not a lottery ticket. I cashed out my options several years ago. I'm ready to buy again, but at what price I haven't figured out.
I appreciate your optimism and you are correct regarding other buyouts affected by the credit crunch. My comment was more about psychology and the psychology of a failed deal on station multiples.
Your last comment says it all..."at what price I haven't figured out".
That's the question buyers and sellers are asking today.
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