DOJ Requires Clear Channel To Divest In Four Markets To Complete Buyout

By Radio Ink - Feb. 13, 2008

WASHINGTON -- February 13, 2008: The Department of Justice says it will require Clear Channel to divest radio stations in Cincinnati, Houston, Las Vegas, and San Francisco in order for the company to proceed with a buyout led by private equity groups Bain Capital and Thomas H. Lee Partners.

Additionally, the DOJ's Antitrust Division has filed suit in Washington, DC, to block the acquisition, and at the same time has filed a proposed settlement that, if the U.S. District Court in Washington approves it, will resolve the lawsuit and the DOJ's competitive concerns.

The divestitures will be required, the DOJ said, because "the transaction, as originally proposed, likely would have resulted in higher prices to purchasers of radio advertising in Cincinnati, Houston, Las Vegas, and San Francisco because [buyers] Bain Capital and Thomas H. Lee Partners already have substantial ownership interests in two firms that compete with Clear Channel in those cities. Bain and THL have ownership interests in Cumulus Media Partners LLC (Cumulus), a large nationwide operator of radio stations, and THL also has an ownership interest in Univision Communications Inc. (Univision), a large nationwide operator of radio stations that broadcast primarily in Spanish."

According to the complaint filed by the Antitrust Division, radio stations owned by Clear Channel and Cumulus compete head-to-head in Cincinnati and Houston, while Clear Channel and Univision own competing Spanish-language radio stations in Houston, Las Vegas, and San Francisco. The division must approve the buyers of the divested Clear Channel stations.

"Without the divestitures obtained by the department, advertisers that rely on radio advertising in the affected cities likely would have faced higher prices," said Thomas O. Barnett, Assistant Attorney General in charge of the Antitrust Division. "The divestitures will ensure that advertisers will continue to receive the benefits of competition."

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Media and Energy

By Faith Chatham - DFWRCC - Dec. 6, 2007
Today Media Consolidation and Energy are hot topics in Washington. Congressman John Dingell's assessment that the FCC has been "short-circuiting procedural norms" and failing to communicate appropriately with members, other legislators and the public is circulating through Washington and across America.

FCC Chairman Kevin Martin ignited a fire storm when he moved to allow consolidation of media in the same market. See HOUSE SUBCOMMITTEE TO INVESTIGATE FCC and HOUSE SUBCOMMITTEE TO QUESTION FCC ON MEDIA OWNERSHIP

On another front, privacy is a hot button for citizens. Advancements in technology now allow internet providors to track every website visited by their customers. See WATCHING WHAT YOU SEE ON THE WEB.

We continue with the same old leap frog pattern between technological advances, profit driven infringements, citizens outcry as privacy erodes, governmental regulations, lobbyist and citizen activists demands for advantages or remedies. It is prudent for citizens to keep tabs on these developments. What news we have access to through media in our hometowns and who watches what we read and write on the internet and how that information is used is up for grabs.