Clear Channel to Buy Ackerley Group
Oct 9, 2001 12:00 PM
San Antonio and Seattle - Oct 8, 2001 - Clear Channel Communications is buying media and broadcasting company Ackerley Group for $495 million in stock, the latest in a string of deals designed to boost Clear Channel's national presence.
The acquisition solidifies Clear Channel as a national player in the increasingly important outdoor advertising market, putting it on firm footing against Viacom's Infinity Outdoor business.
Under the agreement, San Antonio-based Clear Channel would pay 0.35 share for each Ackerley share, which would value Ackerley at $14.11 a share, a 28% premium over its closing price on September 5, 2001. The stock rose $2.40, or about 21.8%, to close at $13.40, while Clear Channel shares were down $1.01 at $39.30, both on the New York Stock Exchange.
The purchase price, which includes Clear Channel's assumption of $281 million in debt, translates into a rich multiple of 37.7 times cash flow for Ackerley's trailing 12 months.
Properties to be transferred to Clear Channel on the deal's closing, scheduled for the first quarter of 2002, include 16 TV stations, four radio stations and more than 6,000 outdoor displays in the Boston, Seattle and Portland, Ore. metropolitan markets. As these assets are to be meshed with Clear Channel's 1,220 radio and 19 TV stations, as well as about 770,000 ad displays worldwide, it's nothing short of surprising the deal will likely sail through regulatory channels.