The Federal Communications Commission (FCC) has approved the buyout of US radio operator Clear Channel Communications by two private equity firms. The FCC, made up of three Republicans and two Democrats, voted to permit the acquisition of San Antonio, Texas-based 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 US markets under the agreement approved by the FCC.
But even though they voted for approval, Copps and his fellow Democrat on the FCC, Jonathan Adelstein, also expressed concerns about the deal. 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,” Copps said.
Clear Channel said in December the pending buyout would close later than expected - in the first quarter of 2008, rather than before the end of 2007 as previously targeted - as it awaited regulatory clearance.
A spokeswoman for Clear Channel said on January 14 that the company had made a pre-merger notification filing with US antitrust authorities. Such filings are required by law to allow US antitrust enforcers to determine if deals violate anti-monopoly laws.
(Source: Reuters)