TSC Staff
Clear Channel Communications Inc. (CCU Quote - Cramer on CCU - Stock Picks) Tuesday became the single largest owner of radio stations in the U.S. After the close yesterday, the Justice Department said it filed an agreement in federal court that allows Clear Channel to finalize its $15.9 billion purchase of AMFM Inc. (AFM Quote - Cramer on AFM - Stock Picks).
As part of the agreement, AMFM will sell part of its ownership in Lamar Advertising Co. (LAMR Quote - Cramer on LAMR - Stock Picks). The consent decree still requires approval by a judge. Although the government had approved the deal, the merger could not be completed without the Justice Department's antitrust division giving the okay. The government was concerned the original deal would have harmed advertisers who rely on radio. Douglas Melamed, principal deputy assistant attorney general of the antitrust division, said in a prepared statement: ``The divestitures required by the consent decree ensure that customers of both types of advertising will continue to enjoy the benefits of competition -- low prices and high quality services.'' Under a deal proposed last month, Clear Channel and AMFM agreed to sell 99 radio stations in 27 markets. So far, 85 of those radio stations have been sold. Once the deal is concluded, Clear Channel will own and operate about 900 radio stations. In recent trading, Clear Channel was down 25 cents, or 0.3%, to $77.50. AMFM was down 6 cents, or 0.1%, to $72.75.
RSS
