• by Erik Sass  @eriksass1, May 7, 2007

Some big radio players are making moves--others won't touch that dial.

Per a New York Post report Friday, Westwood One Inc. will put itself up for sale in June, citing three unnamed sources who said the sale will begin following shareholder approval of a syndication deal with CBS Radio. The national radio network, valued at just under $1 billion, has agreements with the NFL, CBS News, CNBC Business Radio, MTV Radio, the VH1 Radio Network, The Wall Street Journal and various international partners.

The company's stock surged 13% after the report, with Bear Stearns analyst Christopher Ensley writing that "more upside could be realized if one of Westwood One's competitors were to buy the company."

Conversely, Clear Channel Communication's board of directors rejected a proposed buyout from two private-equity firms: Thomas H. Lee Partners and Bain Capital. The board said that proxy voting forms received from Clear Channel shareholders indicate the vote on the proposed sale will fail at the company's meeting May 8.

The buyout had encountered opposition from major shareholder representatives and advisors, including Institutional Shareholder Services, which told clients the private-equity firms' second bid of $39 a share was still too low.

If the deal fails, Bear Stearns analyst Victor Miller predicts a sell-off of the company's properties, turning it into a pure-play radio company. Its 488 small-market radio stations, already on the block, would be followed by the sale of the international and domestic outdoor companies. Clear Channel recently sold its 56 television stations to Providence Equity Partners for $1.2 billion.

If no other bidders come forward, Miller predicts that Clear Channel's management could enact Plan B, selling off remaining properties to concentrate on its radio business, raise share prices and produce special dividends for shareholders. According to Miller, such actions could raise the stock price as high as $44 a share.