On Valentine’s Day, representatives of Clear Channel, Bain Capital, and Thomas H. Lee Partners weren’t having their music websites featured on NPR. Instead, they were (presumably) hanging out around the United States Department of Justice, perhaps the least romantic place in the entire country.
The two private equity firms had their share of amorousness, however, assuming they find purchasing maybe the largest media conglomerate ever sexy (and I’m assuming a private equity firm would find that ridiculously sexy). The Department of Justice gave Bain and Lee the green light to buy out Clear Channel. The firms (the former of which was started by Mitt Romney) already “have substantial ownership interests” in Cincinnati, Houston, Las Vegas, and San Francisco, so Clear Channel will be forced to sell its stations in those markets. Says the DOJ: "The divestitures will ensure that advertisers will continue to receive the benefits of competition." (In response to which I offer: “K.”)
In other news, Clear Channel is strong-arming a separate equity firm to complete a $1.2 billion purchase of 56 TV stations from itself. There’s a $45 million contract termination fee built into the deal, apparently, but I guess Clear Channel -- who has effectively waived the termination fee by starting a lawsuit -- has had a good week and might as well let it ride.
Private equity firms! Departments of Justice! Buyouts! Join me next week where I’ll just start covering finance and see how long it takes P to notice.
