Clear Channel Communications, the company that plans to purchase SFX Entertainment, has announced a definitive agreement to sell 12 stations to Radio One, Inc., the nation's leading radio company dedicated to black listeners. This sale of 12 stations is part of a separate and previously announced 72-station divestiture. The divestiture paves the way for federal approval of Clear Channel's purchase of AMFM, another radio broadcaster.
Progress on the AMFM deal (announced last October) is considered progress on the SFX deal (announced Feb. 29). The SFX deal will probably be completed after AMFM, in the third quarter of 2000. SFX Entertainment develops and manages touring Broadway shows, and sells Broadway subscription series and individual productions in 55 markets. An integrated franchise that promotes and produces a broad variety of live entertainment events locally, regionally and nationally, SFX has 122 venues overall, and owns or operates venues in 31 of the top 50 domestic markets. Clear Channel Communications is a leading radio broadcaster with a major worldwide position in the outdoor advertising (billboard) business.
After the purchase of Clear Channel's 12 stations, Radio One will control or own 48 stations in 19 markets.
The ongoing Clear Channel divestiture has already had an impact on Spanish-speaking radio, as Hispanic Broadcasting (the former Heftel Broadcasting) announced an agreement to purchase Austin's KEYI-FM, Denver's KXPK-FM, and Phoenix's KKFR-FM for $127 million in cash. The Phoenix station already has a large Spanish-speaking audience and Hispanic Broadcasting plans to initiate Spanish programming in Austin and Denver later this year.
When the AMFM and SFX deals are completed, San Antonio based Clear Channel will reportedly operate 874 radio and 19 television stations in the United States with equity interests in over 240 radio stations internationally. Clear Channel will also operates more than 550,000 outdoor advertising displays, including billboards, street furniture and transit panels, across the world. -- By Murdoch McBride