FCC OKs Troubled Clear Channel TV Deal

FCC OKs TROUBLED CLEAR CHANNEL TV DEAL
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
The FCC late Thursday conditionally approved the sale of Clear Channel Communications’ TV station group to Providence Equity Partners. But Clear Channel confirmed three weeks ago that Providence's interest in completing the $1.2 billion deal has been waning and that it may pull out, despite a $45 million breakup penalty. Providence has interests in two other TV station groups, Univision and Freedom Communications. The FCC conditioned its grant of the deal on Providence/Newport coming into compliance with duopoly restrictions in eight markets within six months of the closing of the deal. The deal involves 35 full-power TV stations and associated low-power and Class A stations and translators. Seven of the eight problem markets involve combinations of Univision and Clear Channel stations. The FCC said that Newport could either spin off its stations in the markets or Providence could divest its interest in Univision. The eighth market is Jacksonville, Fla., where Clear Channel has two stations, WTEV and WAWS. FCC rules prohibit common ownership of two of the four top-rated stations in markets the size the Jacksonville.
http://www.tvnewsday.com/articles/2007/11/29/daily.11/

* FCC Order
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-201A1.doc

* Commissioner Copps: "No one should be under any illusion that Clear Channel's sale of its 35 full-power television stations strikes a blow for de-consolidation. After this transaction closes and all divestitures have occurred, Providence Equity Partners will have attributable interests in a whopping 86 television stations and 99 radio stations in the United States, as well as interests in media companies around the world such as MGM studios (largest shareholder), Yes Network, Hallmark Channel, and Warner Music Group. You will search this Order in vain, however, for any mention of the scope of Providence's holdings or how they potentially affect our public interest analysis."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-201A2.doc