Clear Channel sale still on track

by Tristan O'Carroll, Media Week 12-Mar-08, 11:55

LONDON - Thomas H Lee, one of the private equity firms behind the buyout of Clear Channel Communications, has said it is confident the $20bn (£9.9bn) deal will go through.

Thomas H Lee, one of the private equity firms behind the buyout of Clear Channel Communications, has said it is confident the $20bn (£9.9bn) deal will go through.

Recent unrest in financial markets has promoted fears that the deal might not be completed.

However, Richard Bressler, managing director at Thomas H Lee Partners, insisted the deal is on track. He said: "We continue to be confident that the Clear Channel deal is going to get done."

Bressler was speaking at a US House of Representatives' hearing on the impact of private equity ownership of the media.

Clear Channel first agreed its sale to a group of investors led by Thomas H Lee Partners and Bain Capital Partners in November 2006. The deal was approved by shareholders last September.

The parties have set themselves a deadline of 12 June to complete the deal, which has already secured relevant regulatory approvals.

Since that date was announced, in January, Independent News & Media bought out Clear Channel Outdoor Holdings' 50 per cent stake in African advertising firm Clear Channel Independent.

On Monday, Clear Channel signed a ten-year agreement with Vision Media Group (VMG), previously ScreenFX, to handle ad sales across its national network of digital screens in shopping malls.

VMG first announced it would outsource its ad sales to Clear Channel in January, when Screen FX bought rival contractor Screen Media Networks, before rebranding as VMG.

Clear Channel Outdoor UK is currently displaying the UK’s largest ‘steaming’ billboard (pictured) to promote the Heinz range of ‘Taste of Home’ soups.