Continue reading Clear Channel (CCU) first-quarter profit soars but misses estimates

Clear Channel (CCU) first-quarter profit soars but misses estimates originally appeared on BloggingStocks on Fri, 09 May 2008 09:52:00 EST. Please see our terms for use of feeds.

It's a scary thing for investment bankers: the "credit crunch." It has essentially depleted the industry, as dealmaking has shrunk significantly.

In fact, according to Bloomberg, there was a 35% drop in M&A fees for Q1.

True, the M&A business is known for its "feast-famine" cycles, but this time it looks like things could be particularly bleak - and perhaps long lasting. Just look at the break-down of the $19.5 billion buyout for Clear Channel Communications (NYSE: CCU).

Basically, financial institutions are in the process of repairing their balance sheets, and as a result, don't have the firepower to finance deals -- especially large ones. In fact, these firms need to find ways to deal with more than $200 billion in LBO loans.

There is also likely to be a slowdown in strategic acquisitions. That is, as the US economy slows down - which may impinge the global economy - where buyers are likely to get jittery. Why take big risks in such an environment?

Now, there are offsetting factors such as the emergence of mega sovereign wealth funds. However, they may get some political pushback.

In other words, don't expect a comeback anytime soon.

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.

Dude, where's my M&A fees? originally appeared on BloggingStocks on Mon, 31 Mar 2008 11:11:00 EST. Please see our terms for use of feeds.

Clear Channel buyout in trouble? originally appeared on BloggingStocks on Tue, 08 Jan 2008 14:58:00 EST. Please see our terms for use of feeds.

Time can be the enemy of buyout deals. It gives the parties more time to think about things -- or get frustrated. Just look at what happened with the Harman International Industries, Inc. (NYSE: HAR) implosion.

But, in the case of the buyout of Clear Channel (NYSE: CCU), the deal somehow appears to be mostly complete (the process took about 10 months). That is, today the company announced that its shareholders approved the transaction. As a result, the company's buyers -- Bain Capital Partners, LLC And Thomas H. Lee Partners, L.P. -- will become the new owners of the radio powerhouse.

In fact, during the buyout process, Clear Channel increased the price tag two times. There was also another interesting feature added along the way; that is, the shareholders have the right to roll over some of their equity into the private entity.

But, ultimately, the key takeaway is that radio has proven to be quite resilient. Despite competition from satellite providers and the Internet, the fact remains that traditional radio continues to be a big part of people's lives -- and more to the point, a nice cash-cow business.

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.

Listen to this: Clear Channel (CCU) finally gets a buyout deal originally appeared on BloggingStocks on Tue, 25 Sep 2007 15:55:00 EST. Please see our terms for use of feeds.

Continue reading Time spent viewing an ad -- new metric has many applications

Time spent viewing an ad -- new metric has many applications originally appeared on BloggingStocks on Thu, 19 Jul 2007 14:45:00 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.

The $19.5 billion buyout of Clear Channel (NYSE: CCU) is still not very clear. Even when its buyers -- Thomas H. Lee and Bain Capital -- boosted the price to $39 from $37.50, some of Clear Channel's investors were not convinced.

But Clear Channel is not stopping. In fact, the firm is already paving the way for major changes.

This week, the firm sold its TV group for $1.2 billion to private equity firm Providence Equity Partners. The deal includes 56 stations.

There are also plans to sell off radio stations.

Basically, these actions are needed to pass muster with the antitrust authorities. Moreover, the cash will be helpful when debt is loaded on the balance sheet.

Yet, for Clear Channel to get its own buyout deal completed, it needs to secure a two-thirds vote from shareholders. That's a tough hurdle -- given the current stock price of $35.75, it looks like the mega deal probably won't happen.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Clear Channel grabs $1.2 billion from private equity firm originally appeared on BloggingStocks on Sat, 21 Apr 2007 14:33:00 EST. Please see our terms for use of feeds.

Continue reading FCC settles payola probe for a song

FCC settles payola probe for a song originally appeared on BloggingStocks on Sun, 15 Apr 2007 13:10:00 EST. Please see our terms for use of feeds.

Best Buy helps raise $470,000 for "Toys for Teens" program originally appeared on BloggingStocks on Thu, 11 Jan 2007 14:45:00 EST. Please see our terms for use of feeds.