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Investors Worry Clear Channel Sale Is Off the Air

Posted Jan 30, 08 3:22 PM CST in Technology,  Business 

(Newser) – Optimism on Wall Street about Clear Channel's $19 billion equity buyout is fading and its share price is spiraling lower as the deal, more than a year in the making, appears to be unraveling—done in by regulatory issues, credit worries, and deteriorating industry conditions, the Wall Street Journal reports. 

Clear Channel’s stock has plummeted 7.2%, cutting the company’s value by $2.3 billion in just two days. Jittery investors are hedging their bets in part because other high-profile private equity deals, including for SLM Corp., United Rentals, and Alliance Date Systems, recently have fallen through. Clear Channel and its buyers, Thomas H Lee Partners and Bain Capital, have remained mum, increasing investor jitters.
Sources: Wall Street Journal, CNN

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Clear Channel Communications Inc. headquarters are seen in San Antonio in this Aug. 8, 2006 file photo. A $19 billion deal for the radio station and billboard advertising leader may be on shaky ground.   (Associated Press)
Clear Channel Communications Inc. headquarters is seen in San Antonio, in this Nov. 16, 2006 file photo. Wall Street is worried a $19 billion buyout of the company will be nixed.   (Associated Press)
Clear Channel controls ad contracts for landmark structures such as the Millennium Arches.   (Associated Press)
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