Yesterday no fewer than 20 companies around the world announced 40,000 layoffs. As I posted, that's the flip side of the great inflation report that came out this week. And those 40,000 are among the first of 2.1 million U.S. jobs that are forecast to disappear in 2009 -- particularly if the $825 billion stimulus plan does not pass.

Here are some of yesterday's cuts from the U.S. companies:

• Circuit City Stores is liquidating and taking 30,000 jobs along for the ride
• Hertz Global Holdings Inc. (NYSE: HTZ) is eliminating 4,000 jobs worldwide due to a drop in travel demand.
• WellPoint (NYSE: WLP) the second-largest U.S. health insurer, will end 1,500 jobs, which include 600 workers and 900 open positions.
• Clear Channel (NYSE: CCO) -- the largest U.S. radio broadcaster -- will lay off 1,500 employees on January 20.

It's no secret that Talk Radio host extraordinaire Rush Limbaugh has revolutionized the alternative media. With his new contract, it appears that Rush is once again on the cutting edge of societal evolution, and has once again laid down the gauntlet that he is light years ahead of his competition. What's so amazing is that in an era when traditional media is having all kinds of problems, whether it's declining newspaper sales, or declining ratings for the nightly news, the man who sits behind the golden EIB microphone is forging ahead as if nothing is happening.

According to a press release, Limbaugh has signed a long-term contract extension:

Advertiser and affiliate demand is at an all-time high for Mr. Limbaugh. President of Premiere Radio Networks Charlie Rahilly stated, "The Rush Limbaugh Show enjoys an unprecedented platform of radio affiliates. Plus, advertisers harness the intensity of listener engagement -- no one's 'word of mouth' about a product or service delivers more impact than Mr. Limbaugh does. The Premiere team is proud to partner with Mr. Limbaugh deep into the next decade."

Just a few weeks ago, it looked like the $19.4 billion buyout of Clear Channel Communications (NYSE: CCU) was dead. But in the deal market, things can change quickly.

Just today, the New York Supreme Court said there will be a stay on the litigation on the deal. According to CNBC, it looks like the parties are engaged in heavy settlement talk.

No doubt, a trial could be problematic for the banks that are on the hook for $22 billion in debt financing. These banks include: Citigroup (NYSE: C), Credit Suisse (NYSE: CS), Morgan Stanley (NYSE: MS), Royal Bank of Scotland, Deutsche Bank AG and Wachovia (NYSE: WB).

Now, they may be willing to fund the deal.

Why? Well, it looks like the debt markets are improving and the major banks have worked hard to boost their balance sheets.

In other words, the US credit crunch may be thawing. If so, we may see some more dealmaking – which would be a relief for Wall Street banks eager to get some juicy fees.

So far in today's trading, Clear Channel's shares are up 9.5%.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Cisco Systems Inc. (NASDAQ: CSCO) beat Q2 expectations but offered a weak outlook.
• Clear Channel Communications Inc. (NYSE: CCU) higher Q1 profits failed to beat expectations.
• Crocs Inc. (NASDAQ: CROX) just missed EPS estimates but raised its full-year guidance.
• CVS Caremark Corp. (NYSE: CVS) strong Q1 results only met Wall Street expectations.
• eResearch Technology Inc. (NASDAQ: ERES) beat Q1 expectations and offered Q2 and full-year guidance.
• Foster Wheeler Ltd. (NASDAQ: FWLT) beat estimates due to a boost in its power plant segment.
• Internet Brands Inc. (NASDAQ: INET) reported strong Q1 results on ongoing M&A.
• Midway Games Inc. (NYSE: MWY) widened its loss in Q1 but beat expectations.
• News Corp. (NYSE: NWS) Q3 earnings jumped on a one-time transaction with Liberty Media.
• NVIDIA Corp. (NASDAQ: NVDA) missed Q1 estimates but was upgraded by analysts anyway.
• NYSE Euronext (NYSE: NYX) reported a first-quarter profit above analysts' estimates.
• Sara Lee Corp. (NYSE: SLE) Q3 profits surged but fell short of analysts' expectations.
• World Wrestling Entertainment Inc. (NYSE: WWE) posted strong results but couldn't cover its dividend.

Upcoming results to watch for include Sprint Nextel (NYSE: S), XM Satellite Radio (NASDAQ: XMSR), Sirius Satellite Radio (NASDAQ: SIRI), Electronic Arts (NASDAQ: ERTS), Whole Foods (NASDAQ: WFMI), Wal-Mart (NYSE: WMT), Deere & Co. (NYSE: DE), Toll Brothers (NYSE: TOL), Applied Materials (NASDAQ: AMAT), JC Penney (NYSE: JCP), Macy's (NYSE: M), Nordstrom (NYSE: JWN), Hewlett-Packard (NYSE: HPQ), Abercrombie & Fitch (NYSE: ANF).

Visit AOL Money & Finance for more earnings coverage.

MAJOR PAPERS:

• Wendy's International Inc (NYSE: WEN), struggling since the 2002 death of founder Dave Thomas, and pressed by investor Nelson Peltz to improve results, will today announce a deal with Peltz, the Wall Street Journal reported.
• The Wall Street Journal also reported that the House Financial Services Committee voted to approve $15B in loans and grants so that local governments can buy foreclosed homes throughout the U.S. Committee chairman Barney Frank said the bill will avoid abuse, including requiring that purchased homes be a minimum 60 days into the process.
• Adding to evidence of a rally in corporate credit markets, the Financial Times reported that Deutsche Bank AG (NYSE: DB) is preparing another big sell-off of its leveraged loans in Europe.

OTHER PAPERS:

• Several e-mails that have been obtained by the New York Post sent between Wall Street banks may prove a serious setback in the fight over the takeover Clear Channel Communications Inc (NYSE: CCU). The e-mails reportedly show the banks, led by Citigroup Incorporated (NYSE: C) and Deutsche Bank, looking to get out of financing the buyout by Bain Capital and THL Partners by offering terms "they know the [firms] won't be able to accept."

MOST NOTEWORTHY: Energy companies, Regulated and Diversified Utilities and Tailsman Energy were today's noteworthy upgrades:

• Bernstein raised its 2008 oil forecast to $92.30/bbl, up 27%, and 2008 natural gas forecast to $8.30/mcf, up 7%. By 2012, the firm expects oil prices to be around $86/bbl and for gas to be $9.2/mcf. The firm upgraded Apache Corp (NYSE: APA) and XTO Energy (NYSE: XTO) to Outperform from Market Perform and EnCana (NYSE: ECA) to Market Perform from Underperform.
  
• Goldman upgraded the Regulated and Diversified Utilities sub-sectors to Attractive from Neutral citing expected economic weakness, positive commodity exposure, and earnings growth. The firm upgraded American Electric Power (NYSE: AEP) to Buy from Neutral.
  
• Citigroup upgraded shares of Tailsman Energy (NYSE: TLM) to Buy from Hold ahead of the company's annual meeting as they believe it will announce a new strategy of low risk resource development on existing acreage and that shares will react positively.

OTHER UPGRADES:

• UBS raised Watson Wyatt (NYSE: WW) to Buy from Neutral.
  
• Jefferies upgraded Clear Channel Outdoors (NYSE: CCO) to Buy from Hold.
  
• Bear upgraded Telecom Italia (NYSE: TI) to Peer Perform from Underperform.

MAJOR PAPERS:

• The Wall Street Journal said the $19B privatization of Clear Channel Communications Inc (NYSE: CCU) was near collapse as the private-equity firms behind the deal and the banks financing it failed to resolve their differences over terms of the credit agreement, people familiar with the matter said.
• Comcast Corporation (NASDAQ: CMCSA) and Time Warner Inc (NYSE: TWX) are in talks to fund a new nationwide wireless company that would be operated by Sprint Nextel Corporation (NYSE: S) and Clearwire Corporation (NASDAQ: CLWR), and use WiMax technology, reported the Wall Street Journal. Intel Corporation (NASDAQ: INTC) and Google Inc (NASDAQ: GOOG) may also help with funding.
• The Wall Street Journal also reported federal regulators are handing out warnings to banks due to their exposure to development loans and commercial real-estate construction. Sources believe Corus Bankshares Incorporated (NASDAQ: CORS) is facing trouble in the near future due to increasing scrutiny by regulators and the fact that much of the fallout in the condo sector has yet to be felt by banks.
• Some banks in the government-sponsored Federal Home Loan Banking system want to guarantee municipal infrastructure projects, the Financial Times reported, thus fulfilling the role traditionally taken by monoline insurance groups such as MBIA Inc(NYSE: MBI).

According to a report in the Wall Street Journal [a paid publication], it looks like the proposed $19 billion buyout deal for Clear Channel Communications, Inc. (NYSE: CCU) is virtually dead (the private equity sponsors include Thomas H. Lee and Bain Capital Partners LLC).

This shouldn't really be a shock. Even though the credit markets have seemed to stabilize, it's incredibly difficult to justify a mega deal. In other words, why would a bank want to further risk its balance sheet – especially for a company that is showing weakness? After all, with the US economy slowing down, this will mean tougher times for ad-based businesses.

It's certainly ugly in after-hours trading; that is, Clear Channel's stock is down 19% to $26.20. Yes, investors have given up on this deal. What's more, it's really a symbol of the state of the private equity market. It's going to be a long time until we see major deals hit the markets.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Clear Channel Communications, Inc. (NYSE: CCU) recently down $2.08 to $32.39:

Thomas H. Lee Partners and Bain Capital have had an outstanding $39.20 cash bid for CCU. CCU's debt placement is expected to be fulfilled this week. CCU call option volume of 36,200 contracts compared to put volume of 162,529 contracts. CCU April option implied volatility of 130 was above its 26-week average of 49 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

As an American Idol host, American Top 40 radio DJ, and anointed successor to talk show god Larry King, Ryan Seacrest is the 76th best-paid celebrity in America, earning $14 million a year, according to Forbes.

Now, he's looking to up his income astronomically. Mr. Seacrest has signed a new contract for his five-hour radio show with Clear Channel Communications (NYSE: CCU), and it comes with an interesting twist. According to the Wall Street Journal(subscription required), "Mr. Seacrest will own and control a portion of the advertising time on the show. The goal: bringing in some of the sponsors he already has a relationship with on television, with the potential fringe benefit of getting them more interested in radio. He will also sell some of his own advertising on the "American Top 40" radio countdown."

Mr. Seacrest's ad selling duties will apply to ads integrated into the show -- for instance, saying that a coming song is "brought to you by" a brand. The more ubiquitous between song commercial breaks will still be handled by the networks.

Reading the Journal article, you get a feel for what a savvy entrepreneur Mr. Seacrest is -- he's more than the smirky metrosexual that he comes across as on American Idol.

With traditional radio outlets struggling to say relevant in the face of what are seen as more viable advertising outlets like the internet, the networks are on the lookout for new ways to sell ads. If this works, we could see a lot more of it in the future.

Clear Channel (NYSE: CCU) has settled its problems with selling its TV operations to Providence Equity. Now one of the banks backing the deal, Wachovia (NYSE: WB), wants out.

According to The Wall Street Journal, "Wachovia has argued that even though the sale price is lower and the new agreement contains a larger equity component, it is a separate transaction from the one it originally agreed to fund." If banks keep walking away from their private equity clients, they won't have any left.

Wachovia was going to put $500 million into the deal. Without the cash, the deal may fail. It is possible that Wachovia would have to pay a break-up fee but the bank would argue that, because the deal had changed, it does not even owe that.

Banks are willing to risk the one-time payout of a break-up instead of taking LBO debt onto their balance sheets and then having to write it off if they cannot resell it.

The new banking practice of backing out on contracts with customers who have paid huge fees in the past is not likely to endear them to the buyout industry in the future.

Douglas A. McIntyre is an editor at 247wallst.com.

Private equity firms have begun to walk away from transactions to take a public companies private. In tight credit markets and facing a slowing economy, deals that looked good in early 2007 don't look so hot now. In most cases the public company boards try to keep deals from breaking apart by lowering their asking price. Sometimes they take a break-up fee and allow the buyer out of its obligations.

Clear Channel Communications Inc. (NYSE: CCU) won't take any of those "let the fish of the hook" routes. It has a deal with Providence Equity to buy its TV stations for $1.2 billion. The transaction was announced ten months ago and has not closed yet.

According to The Wall Street Journal (subscription required), "Clear Channel is suing Providence for 'specific performance,' a legal term which typically addresses the ability of the seller to force the buyer to complete a deal agreement."

Market observers and the press say that many banks and buy-out firms are being advised by their attorneys to turn their backs on transactions instead of getting burned by deals that have begun to look too rich between signing a buy-out agreement and actually closing. Clear Channel is willing to gamble that it can win its case for closing a deal in court.

Douglas A. McIntyre is an editor at 247wallst.com.

Clear Channel (NYSE: CCU) -

The U.S. Department of Justice announced it would require CCU to sell radio stations in four cities in order to win approval for its sale to Thomas H. Lee Partners and Bain Capital. Thomas H. Lee Partners and Bain Capital announced a $39.20 cash bid for CCU in early 2008.

CCU closed at $29.49 Wednesday.

CCU said: "The merger continues on track for a first quarter close." The Federal Communications Commission approved the deal in January.

CCU overall option implied volatility of 88 is above its 26-week average of 36 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

This near-lifelong private equity buyout of Clear Channel Communications (NYSE: CCU) may finally be coming to an end. Today the Department of justice issued a statement after the close of the market. This merger is being cleared with some conditions. Assuming this closes at the stated price of $39.20, this would be indicative of a 32% merger-arb gain. Not bad at all for a near-$20 Billion private equity deal at a time when it seems like all super-deals in private equity are dead.

Bain Capital and Thomas H. Lee can acquire the radio conglomerate if it divests radio stations in Houston, Las Vegas, Cincinnati, and San Francisco. This will prevent higher advertising prices in those markets. The Antitrust Division of the DOJ filed a suit today blocking the deal, but it filed a proposed settlement that would resolve competitive concerns.

This does allow any person to submit written comments during a 60-day comment period. Just in the last couple weeks the merger-arb spread was indicating that this deal was looking at-risk.

Now if we can just get these guys to approve the Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio (NASDAQ: XMSR) merger. There was a boutique research report yesterday noting that a DOJ approval may be imminent.

Jon Ogg is a partner at 247WallSt.com.

For the private equity space, it's been a mixed bag this week. The good news is that the $17.1 billion acquisition of Harrah's Entertainment got done (the largest casino deal in history). The buyers included TPG and Apollo Global Management LP.

But there was some bad news too -- it looks like Blackstone (NYSE: BX)'s proposed buyout of Alliance Data Systems (NYSE: ADS) is on the rocks.

So, in this environment, it's understandable that Wall Street is jittery with buyout deals. Just look at the pending buyout of Clear Channel Communications (NYSE: CCU).