SAN ANTONIO, Texas — The nation's largest radio broadcaster, Clear Channel Communications Inc., is buying The Ackerley Group, a leader in outdoor displays that also owns radio and television stations, for about $500 million in stock.
Clear Channel, which operates about 1,180 radio and 18 TV stations in the United States, already is involved in events promotion and billboard advertising.
But the deal would allow the San Antonio-based company to enter Boston, Seattle and Portland, Ore., which have three of the top 25 U.S. outdoor advertising markets, Clear Channel chairman and chief executive Lowry Mays said Monday.
"In addition, this acquisition enables us to offer our advertising customers more cross-platform advertising opportunities, because we have a radio station, outdoor advertising operation or live entertainment venue presence in 15 of their 18 television markets," said Mays in a prepared statement.
Under the terms of the agreement, The Ackerley Group's shareholders will receive 0.35 shares of Clear Channel stock for each share of The Ackerley Group.
At Friday's closing prices, that would give Ackerley shareholders about $14.11 a share for each of their shares, a 28 percent premium. Ackerley closed Friday at $11 a share on the New York Stock Exchange, while Clear Channel shares ended at $40.31.
Clear Channel is also assuming about $294 million of The Ackerley Group's debt.
The deal is expected to be completed during the first quarter of 2002, subject to the approval of Ackerley stockholders, the Federal Communications Commission and the Department of Justice.