Potential For Large Market Clear Channel Spinoffs Arising From Ownership Change
December 18, 2006 at 4:32 PM (PT)
If CLEAR CHANNEL has to sell some major market stations to maintain compliance with ownership rules, it's not concerning analysts, who expect that even if CLEAR CHANNEL can't get new waivers to keep the stations, the company will be able to sell the properties for a good return.
STANDARD AND POOR'S analyst TUNA AMOBI told DOW JONES NEWS SERVICE that "I don't think it's necessarily a negative if they can get top dollar, which I think they should... I don't believe the market for radio financing is saturated." CLEAR CHANNEL's holdings in many major markets are grandfathered and waivered, and the company noted that the change in ownership to private hands might trigger the need to sell some stations or get new waivers. NEW YORK, LOS ANGELES, and over a dozen other large markets are covered by the waivers.