FCC votes to approve buyout of Clear Channel

FCC VOTES TO APPROVE BUYOUT OF CLEAR CHANNEL
[SOURCE: Reuters]
The Federal Communications Commission announced on Thursday that it has approved the buyout of Clear Channel by private equity firms Bain Capital Partners and Thomas H. Lee Partners for about $20 billion. Commissioner Michael Copps said Clear Channel would divest 42 radio stations in the top 100 U.S. markets under the agreement approved by the FCC. But even though they voted for approval, Commissioners Copps and Jonathan Adelstein also expressed concerns about the deal. Commissioner Copps said the agency should scrutinize the ownership of media outlets by private equity firms and how it could affect "our ability to ensure that broadcast licensees protect, serve and sustain the public interest." "If I had the ability to launch an FCC inquiry by dissenting to this transaction, I would," Commissioner Copps said.
http://www.reuters.com/article/industryNews/idUSWBT00824420080124

* FCC Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-3A1.doc

* Commissioner Copps: "I have repeatedly called for the Commission to examine the potential impact of private equity on our ability to ensure that broadcast licensees protect, serve and sustain the public interest. Unfortunately, that has not happened, and nothing in today's Order indicates that the Commission has had a change of heart. Instead, we once again close our eyes and pretend that nothing has changed-as if these new entities are no different than our traditional broadcast licensees. And there are those who accuse me of living in the past! The Commission's lack of curiosity here is all the more troubling in light of the announcement last month by Standard & Poor's that when the transaction closes it will cut its ratings on Clear Channel two notches deeper into "junk" territory-and may cut them further-due to the subordination of existing debt to new bank debt."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-3A2.doc

* Commissioner Adelstein: "Approval of this transaction will result in less consolidation in the radio industry. While I support this Order generally, I concur in part to highlight my concern regarding alleged anticompetitive practices with respect to advertising in the radio industry. I agree with the Order's conclusion that, in this case, Mt. Wilson has failed to establish a prima facie case that Clear Channel has engaged in specific anticompetitive sales practices. I am not convinced, though, that the Commission's inquiry should stop there."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-3A3.doc