The news comes a week after Clear Channel's shareholders voted to sell a majority of their stakes to two private-equity firms: Thomas H. Lee Partners and Bain Capital Partners.
Gap Broadcasting, based in Houston, will pick up stations concentrated in Texas--including multiple stations in Abilene, Amarillo, Lubbock, Lufkin, Midland-Odessa, Texarkana, Tyler, Victoria and Wichita Falls. It will also acquire a smaller number of stations in neighboring Oklahoma and Louisiana. Bicoastal is acquiring 14 stations in Oregon--five in the vicinity of Medford and another nine around Albany.
Clear Channel Radio initiated the sale of hundreds of smaller stations to concentrate on its most profitable businesses serving larger markets. Parent company Clear Channel Communications also sold its 56-station television group to Providence Equity Partners for about $1.1 billion in net proceeds. Wall Street analysts speculate the parent company may also spin off its profitable outdoor business once the buyout by private equity is sealed.
The two private-equity firms purchased the stock at $39.20, representing a roughly 30% premium over the average share price of $30 during the 12-month period before October 2006, when the deal was first proposed.