By Susan A. Baird
PBN Web Editor
PROVIDENCE and SAN ANTONIO – Providence Equity Partners Inc.’s Newport Television LLC, a special-purpose holding company, has completed its acquisition of Clear Channel Communications Inc.’s 56-channel Television Group, the companies said Friday in separate after-market announcements.
Included are stations in 24 markets – eight FOX, seven NBC, six ABC and six CBS affiliates, 10 CW, four My Network TV, two NBC Weather Plus and two Telemundo affiliates, five independent stations, and six stations affiliated with Clear Channel’s Variety Television Network (VTV) – plus the Web sites associated with those stations; Inergize Digital Media, manager of the Television Group’s online and wireless initiatives; and the TV Group’s Operations Center.
“These are quality television stations,” said Sandy DiPasquale, a veteran broadcast executive who will serve as president and CEO of the Kansas City, Mo.-based Newport Television. “And I am excited about the opportunity to work with Providence and the CCTV employees to build on their success integrating broadcast and Internet services to meet their customers’ evolving needs.”
“Under the revised terms – with working capital adjustments – Providence paid $1.012 billion, a $212.5 million or 17-percent reduction to the original purchase price,” the private equity firm said in a statement late Friday night. “Providence’s total equity commitment was approximately $260 million, a $102 million or 28-percent reduction from the terms of the original agreement, with total leverage reduced by $110 million or 12 percent.”
The deal, signed last April, originally was valued at about $1.2 billion. But by November, Clear Channel was reporting that Providence Equity might pull out. The equity firm’s attempts to renegotiate – though evidently successful – had spurred lawsuits last month by both Clear Channel and lender Wachovia Corp. (READ MORE)
“We’ve been looking forward to closing this transaction, and are pleased to now begin working with Sandy – a leader we have successfully partnered with in the past – and the talented teams at these premier stations,” Al Dobron, a managing partner at Providence Equity, said in a statement, adding: “We also plan to identify additional high-quality television opportunities to grow the business.”
San Antonio-based Clear Channel Communications Inc. (NYSE: CCU) is a global media and entertainment company whose properties include local radio stations WHJY-FM, WHJJ-FM, WSNE-FM and WHJJ-AM. Additional information is available at www.clearchannel.com.
Providence Equity Partners Inc. is a $21 billion global private investment firm specializing in media and entertainment, communications and information companies. Additional information is available at www.provequity.com.
