Providence Equity Partners May Bail on Clear Channel TV Buy

SEC Filing: Providence ‘Considering Its Options’ in 56-Station Deal

By Jon Hemingway -- Broadcasting & Cable, 11/9/2007 10:57:00 AM

Providence Equity Partners is mulling whether it will back out of a deal to buy Clear Channel Communications’ television assets.

A deal struck in April had Providence taking 56 television stations in 24 markets from Clear Channel for $1.2 billion in cash. According to a Securities and Exchange Commission filing, Providence told Clear Channel it was “considering its options under the agreement including not closing the acquisition on the terms and conditions in the agreement.”

Clear Channel said there were no allegations that the company violated any terms or conditions of the agreement, nor that there was a failure of any condition that would prohibit the closing of the acquisition.

Further, the deal is not a condition for the sale of Clear Channel to private-equity firms Thomas H. Lee Partners and Bain Capital Partners.