Katz Media Offers $3.64 Million Consideration For Interep Client Release
November 12, 2008 at 2:20 PM (PT)
While CLEAR CHANNEL-owned KATZ MEDIA has a signed agreement for a cash deal of $3.64 million for release of INTEREP's clients, this is not a true sale, as others have written.
Trustee KEN SILVERMAN has filed a motion to obtain court approval to enter into an agreement with KATZ MEDIA to purchase consideration to INTEREP in exchange for INTEREP releasing substantially all of its radio station clients from their contracts. If approved, KATZ would also have the right to negotiate with INTEREP employees.
If and when approved by the court, it would permit these INTEREP clients to negotiate with KATZ or any other rep firm. The matter is on the docket for TUESDAY, NOVEMBER 18th with Judge ROBERT DRAIN.
Until a ruling is final, all station contracts remain valid and in force. ALL ACCESS has learned that other suitors may present other alternative transactions to the trustee, that he may consider.
ALL ACCESS has been told that INTEREP will continue to serve its clients and customers until a final decision is reached on the motion.
If the judge rules in favor of KATZ, will CBS move over? CBS RADIO VP/Communications KAREN MATEO told ALL ACCESS, "We continue to look at our options and will make an announcement at the appropriate time."