This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

For Clear Channel, Something's Gotta Give

NEW YORK ( TheStreet) -- Clear Channel is set to redo Ryan Seacrest's contract, The New York Times reports, handing him a raise of $5 million annually from his current $20 million deal.

You probably know Seacrest from television,but he can credit his fortune to radio, particularly Clear Channel. Like many big celebrities, Seacrest got his start in radio. He still hosts syndicated programming for Clear Channel, does a morning show on cash cow KIIS-FM in Los Angeles and recently got a major investment in his production company from Clear Channel or, more precisely, the private equity firms that prop it up, Thomas H. Lee Partners and Bain Capital.
Ryan Seacrest just got a $5 million raise from Clear Channel, bumping him up to a $25 million salary from a company saddled with more than $20 billion in debt.

Even though I am not in the demo, I have no problem with Seacrest earning as much as does at Clear Channel and elsewhere. He deserves it. He's a modern-day Rick Dees or Dick Clark. It is curious, however, that a company saddled with more than $20 billion in debt has decided to make such an investment.

If you really want to freak yourself out, start on page 44 of Clear Channel's most recent annual report. It details the company's obligations.

Of course, you would be insane to go long Clear Channel stock, but if you follow the media space, an interesting situation could be developing.

Clear Channel recently named longtime media executive Bob Pittman as CEO. In addition to continuing with the tradition of cleaning house at radio stations across the country, Pittman changed the company's name. It's no longer Clear Channel Radio; it's Clear Channel Media and Entertainment, or CCME for short.

On the surface, this sounds like a solid idea. And that's because, on the surface, it is. Simply put, traditional radio is dead. And, unless you have disrupted the medium as Pandora (P - Get Report) has, you would be foolish to keep such an outdated moniker on your letterhead. Several sources tell me that, while a nice branding move, it's most likely a strategic one designed to get the attention of prospective suitors.

At day's end, I am not sure how much longer Lee and Bain want to stick with Clear Channel. Seacrest is one thing, but, ultimately they do not need Clear Channel to ride that wave.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
P $17.96 2.70%
SIRI $3.80 0.26%
AAPL $112.55 -0.33%
FB $90.77 1.20%
GOOG $628.08 -1.50%

Markets

Chart of I:DJI
DOW 16,560.03 -82.98 -0.50%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs