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Clear Channel finalizes
merger that includes 7
isle radio stations

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Associated Press

SAN ANTONIO -- Clear Channel Communications Inc. has completed its $23.8 billion purchase of AMFM Inc., becoming the nation's largest radio broadcaster with more than 900 stations, including seven in Hawaii.

The combined company also will operate 19 television stations.

In Hawaii, Clear Channel gets control of KSSK-AM and -FM, KKLV-FM, KHVH-AM, KIKI-AM and -FM, and KUCD-FM.

The Justice Department approved the deal on Tuesday after the companies promised to sell AMFM's 29 percent ownership of Lamar Advertising Co. With the sale of Lamar, a billboard company, the companies resolved concerns that the original deal would have resulted in higher prices and lower quality service to radio and billboard advertisers.

On July 20, San Antonio-based Clear Channel and Dallas-based AMFM agreed under government pressure to sell 99 radio stations in 27 markets, the largest radio divestiture ever. The companies have sold 85 of the stations so far, and Tuesday's agreement with the Justice Department requires them to sell the remaining 14 stations, located in five markets, within 150 days. The agreement to sell Lamar was filed in U.S. District Court in Washington on Tuesday. If approved by the court, the accord would settle a suit the government filed simultaneously Tuesday to block the original deal. Lamar sells out-of-home advertising space, such as billboards, to local and national businesses. A direct competitor to Lamar, Eller Media Co. is owned by Clear Channel.

The government suit said the original merger would have substantially reduced competition in out-of-home advertising and in five radio markets in Pennsylvania, Colorado, Texas and Florida. Stations to be sold are: WEEX-AM and WODE-FM in Allentown-Bethlehem, Pa.; KVOD-AM in Denver; WNCE-FM, WNNK-FM, WTCY-AM and WTPA-FM in Harrisburg-Lebanon-Carlisle, Pa.; KJOJ-AM, KJOJ-FM, KQUE-AM, KSEV-AM and KTJM-FM in Houston-Galveston, Texas; and WMEZ-FM and WXBM-FM in Pensacola, Fla.