Clear Channel Goes to Court over TV Stations Sale

19 February 2008

SAN ANTONIO, Texas: Clear Channel Communications has resorted to law to push through the $1.2 billion (€820m; £515.5m) sale of its 56 US television stations to Providence Equity Partners.

The deal, brokered last spring, began to look less appealing to Providence in the fall, amid declining market prices for TV stations.

Clear Channel has now filed a lawsuit with the Delaware Chancery Court suing the private equity firm for "specific performance", a legal term which typically addresses the ability of the seller to force the buyer to complete a deal agreement.

The legal moves are not directly related to the media giant's tortuous $19.5bn sale to Thomas H. Lee Partners and Bain Capital. But they could further fuel doubts that this bigger deal will ever be completed.

A Providence spokesman said: "We are surprised and disappointed that Clear Channel would suddenly bring this baseless lawsuit as we were trying to work out a mutually acceptable arrangement in difficult market conditions."

Data sourced from Wall Street Journal Online; additional content by WARC staff