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."

Continue reading Rush Limbaugh's $400 million contract: Good for Clear Channel?

Rush Limbaugh's $400 million contract: Good for Clear Channel? originally appeared on BloggingStocks on Wed, 02 Jul 2008 17:22:00 EST. Please see our terms for use of feeds.

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.

Clear Channel -- finally a deal? originally appeared on BloggingStocks on Mon, 12 May 2008 11:37:00 EST. Please see our terms for use of feeds.

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.

• 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."

Newspaper wrap-up: Wendy's and Nelson Peltz to today unveil deal originally appeared on BloggingStocks on Thu, 24 Apr 2008 07:50:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• 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.

Analyst upgrades: Energy companies, utilities, Tailsman Energy originally appeared on BloggingStocks on Wed, 26 Mar 2008 11:48:00 EST. Please see our terms for use of feeds.

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).

Newspaper wrap-up: Sources say Clear Channel deal near collapse over loan term originally appeared on BloggingStocks on Wed, 26 Mar 2008 08:00:00 EST. Please see our terms for use of feeds.

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 deal: Wall Street turns down the volume... to zero? originally appeared on BloggingStocks on Tue, 25 Mar 2008 17:59:00 EST. Please see our terms for use of feeds.

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

Option Update: Clear Channel put volume heavy with elevated volatility originally appeared on BloggingStocks on Tue, 25 Mar 2008 17:16:00 EST. Please see our terms for use of feeds.

Ryan Seacrest to sell his own ads originally appeared on BloggingStocks on Thu, 28 Feb 2008 13:29:00 EST. Please see our terms for use of feeds.

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.

Clear Channel (CCU): Banks walk on another LBO? originally appeared on BloggingStocks on Mon, 25 Feb 2008 09:45:00 EST. Please see our terms for use of feeds.

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

Option update: Clear Channel volatility up following DOJ decision originally appeared on BloggingStocks on Thu, 14 Feb 2008 09:09:00 EST. Please see our terms for use of feeds.

Clear Channel secures an approval, closer to closing merger originally appeared on BloggingStocks on Wed, 13 Feb 2008 18:20:00 EST. Please see our terms for use of feeds.

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).

Continue reading Clear Channel buyout -- even more more static

Clear Channel buyout -- even more more static originally appeared on BloggingStocks on Tue, 29 Jan 2008 13:11:00 EST. Please see our terms for use of feeds.

As it looks forward to the shareholder vote on the tumultuous $19.5 billion, $39.20 a share takeover offer from Bain Capital Partners LLC and Thomas H. Lee Partners LP, Clear Channel Communications Inc. (NYSE: CCU) reported strong second-quarter earnings from its roadside billboard business. Overall revenue rose to $1.8 billion, up 5% from 2006, and net income climbed from $48 million to $68.6 million. Diluted EPS before discontinued operations was $.42, up from $.34 from 2006 but below the $.44 projected by analysts surveyed by Thompson.

Clear Channel Outdoor Holdings (NYSE: CCO), of which CCU owns 90%, continued to drive the corporate earnings with net income up 45% to $68 million and EPS of $.19 vs $.14. The radio segment, which CCO is in the process of selling off, was up only 1%.

The company's stock has followed the general market trend in the past few days, off $1.35 from its $38.20 month high, but on the rebound today.

Clear Channel earnings - signs looking good originally appeared on BloggingStocks on Fri, 27 Jul 2007 12:15:00 EST. Please see our terms for use of feeds.

• Alltel Corporation (NYSE: AT) trading for $67.80 with take-out price of $71.50-12% annualized rate of return.
• Clear Channel Communications (NYSE: CCU) trading for $37.70 with take-out price of $39.20-10% annualized rate of return.
• First Data Corporation (NYSE: FDC) is selling for $32.65 and has a take-out price of $34-for an 18% annualized return.
• Harrah's Entertainment Inc (NYSE: HET) is selling for $85.25 and has a take offer of $90-14% annualized rate of return.
• Tribune Company (NYSE: TRB) is trading at $29.50 with a take-price at $34-30% annualized return.
  
• The most attractive arb play from a return perspective is Tribune but that deal also carries the most risk. Tribune already has a considerable amount of debt and is attempting to add more debt and use the company's ESOP plan to close the deal. In addition, the fundamentals of the newspaper industry continue to remain not very good.

Widening credit spreads means arb profits abound originally appeared on BloggingStocks on Mon, 02 Jul 2007 13:30:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Baird cut ValueClick Inc (NASDAQ: VCLK) to Neutral from Outperform, citing the FTC inquiry.

• aQuantive (NASDAQ: AQNT) was downgraded to Sell from Buy after the company was acquired by Microsoft (MSFT) and because aQuantive no longer trades on fundamentals. Kaufman and Gabelli also cut aQuantive to Hold from Buy.

• Cigna (NYSE: CI) was downgraded at Prudential to Neutral from Overweight on valuation.

• Warner Music Group's (NYSE: WMG) downgrade to Sell from Neutral at Pali Research was based on the lower industry outlook, which Pali believes revenues are likely to fall at least 10% for the industry in 2007, along with the company's release schedule.

• Bear Stearns downgraded Clear Channel Communications (NYSE: CCU) to Peer Perform from Outperform on the acceptance of the higher bid.

• Medtronic Inc (NYSE: MDT) was downgraded to Underweight from Equal Weight at Morgan Stanley...

• Georgia Gulf Corp (NYSE: GGC) was downgraded to Sell from Hold at Matrix USA.

• Stifel cut Core Laboratories (NYSE: CLB) to Hold from Buy.

• UBS downgraded Intuit Inc (NASDAQ: INTU) to Neutral from Buy.

• Occidental Petroleum Corp (NYSE: OXY) was removed from Goldman's Conviction Buy list.

• Friedman Billings downgraded downgraded CapitalSource, Inc (NYSE: CSE) and Countrywide Financial Corp (NYSE: CFC) to Market Perform from Outperform.

Analyst downgrades 5-21-07: AQNT, CCU, CI, CFC and WMG originally appeared on BloggingStocks on Mon, 21 May 2007 11:04:00 EST. Please see our terms for use of feeds.

The board of directors at Clear Channel Communications (NYSE: CCU) finally decided to endorse a $19.35 billion buyout package that is nearly identical to the one it rejected last month. Bain Capital (founded by Republican presidential hopeful Mitt Romney) and Thomas H. Lee Partners won with an offer of $39.20 per share, up from the $39 offer the board rejected in April.

A vote of two-thirds of shares will be required to approve the deal and, with the support of the company's major investors, it appears to be a shoe-in. But I wonder why the deal finally got done. The very minor changes to the terms don't seem like they should have been enough to make the deal a good one for shareholders if it wasn't before.

This may be a case of the "sunk-cost fallacy" or perhaps Clear Channel's management and the private equity firms had became "pot-committed." Like a poker player who has already dumped most of his chips into the pot and finds it difficult to fold, both sides had spent so much time and money working on the deal that it may have been inevitable.

Clear Channel takes $19 billion buyout originally appeared on BloggingStocks on Sat, 19 May 2007 17:50:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The 19.4B sale of Clear Channel Communications Inc (NYSE: CCU) to Bain Capital and Thomas H. Lee Partners is expected to proceed quickly as major shareholders Highfields Capital Management and Fidelity Investments are expected to agree to a new proposal raising the sale bid by 20 cents to $39.20 a share, reported the Wall Street Journal.
• Last month stent implants in the U.S. fell 15% to 71,200 from April 2006, signaling that they may no longer be a strong growth area for the medical industry, reported the Wall Street Journal.
• A new EU law that would slash the roaming charges for mobile phone calls by Europeans when they are traveling on the continent is expected to cut into the profits of companies including Vodafone Group (NYSE: VOD), France Telecom ADS (NYSE: FTE), and Telefonica SA ADS (NYSE: TEF) , reported the Financial Times.

• EMI Group (OTC: EMIPY) has opened its books to rival Warner Music Group (WMG), setting up a four-way bidding war, reported The Business.
• New explorations by PetroChina Company Limited's (NYSE: PTR) parent company, China National Petroleum Corp, have found that the Jidong Nanpu Oilfield in Bohai Bay may have more reserves than previously estimated, reported China Daily.

Newspaper wrap-up 5-17-07: Clear Channel buyout expected to go through quickly originally appeared on BloggingStocks on Thu, 17 May 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that Wal-Mart Stores (NYSE: WMT) is helping to bring eBay Inc's (NASDAQ: EBAY) Skype "to the masses," by selling Skype Internet calling phone gear in the electronics section of its stores.
• The Wall Street Journal's "BreakingViews" section speculated that a merger between General Electric Company's (NYSE: GE) NBC and Yahoo Inc (NASDAQ: YHOO) would "make industrial sense."
• The Financial Times (subscription required) reported that the Bancroft family, which control a majority of the voting shares of Dow Jones and Company Inc (NYSE: DJ), is split over the idea of meeting with News Corporation (NYSE: NWS) Chairman Rupert Murdoch to discuss his $5B offer for Dow Jones.
• The Financial Times reported that Internet jewelry retailer Blue Nile Inc (NASDAQ: NILE) is launching operations in Europe.

• According to the Sunday Telegraph, Rio Tinto (NYSE: RTP) has hired Morgan Stanley to help defend itself in the event of an unsolicited takeover approach.
• The Sunday Telegraph reported that Clear Channel Communications Inc (NYSE: CCU) is expected to put its international poster business up for sale for as much as $3.2B.
• The Telegraph reported that rival groups are looking to stop Alcoa Inc's (NYSE: AA) hostile bid for Canadian aluminum producer Alcan Inc (NYSE: AL).
• The Economic Times reported that Polo Ralph Lauren Corporation (NYSE: RL) is in talks with "leading Indian business houses including the Tatas," according to sources.
  

• DigiTimes.com reported that the ATI Radeon HD that was just introduced by Advanced Micro Devices Inc (NYSE: AMD) has fallen short of expectations in terms of price, performance and energy efficiency.

Newspaper wrap-up 5-14-07: Wal-Mart pushing Skype originally appeared on BloggingStocks on Mon, 14 May 2007 09:15:00 EST. Please see our terms for use of feeds.

Newspaper wrap-up 5-10-07: Murdoch began talks with DJ on March 29 originally appeared on BloggingStocks on Thu, 10 May 2007 09:15:00 EST. Please see our terms for use of feeds.

Shareholders fight back with private equity originally appeared on BloggingStocks on Tue, 08 May 2007 14:49:00 EST. Please see our terms for use of feeds.