Dow Jones Newswires, March 10, 2008
By Corey Boles

Clear Channel Communications Inc.'s (CCU) future path would be "best served" by focusing on fewer radio stations in fewer media markets, the managing director of one of the buy-out firms seeking to acquire the company told Congress Tuesday.

Richard Bressler, managing director of Thomas H. Lee Partners, said in prepared opening remarks before a hearing of the House Telecommunications Subcommittee that he thought Clear Channel would do well by deconsolidating itself.

Thomas H. Lee as well as Bain Capital are currently trying to complete the $22 billion acquisition of Clear Channel, the largest owner of radio stations in the U.S.

"This streamlined approach, in our view, enables Clear Channel to more efficiently deploy and market its digital offerings in the face of competitive challenges from other digital platforms."

Turbulence in financial markets has proved to be a considerable hurdle to the deal getting done as several banks have struggled to find buyers for the portion of the debt being used to fund the buy-out they currently hold.

The House panel was conducting a hearing into the role played by private equity in media consolidation.

In addition to the Clear Channel sale, a number of recent large transactions involving media companies have involved private-equity companies. Alltel Corp., the country's fifth largest cellular company, was taken private last year, as was Tribune Co., and Spanish language broadcaster Univision Communications.

Last summer, Reps. John Dingell, D-Mich., and Edward Markey, D-Mass., chairmen of the House Commerce Committee and of the Telecommunications Subcommittee, respectively, expressed concern in a letter to Federal Communications Commission Chairman Kevin Martin about the increasing role of private equity in media consolidation.

And Michael Copps, the senior Democrat on the FCC, has repeatedly stated his misgivings about the number of deals in which private investors have been involved.

In his opening statement, Bressler said the attempt by Thomas H. Lee and Bain Capital to buy Clear Channel could benefit another policy area of concern to the House Telecommunications Subcommittee, that of increased take-up by minority groups of ownership of broadcast entities.

"We support these efforts and, in the end, we hope that they will help to address the dearth of minority owners in today's broadcast marketplace. Private equity is pleased to play an ongoing role in that regard," he said.

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