Within a month of putting itself up for sale, Clear Channel Communications Inc. (CCU) , America's largest radio broadcaster, has agreed to be bought out by Thomas H. Lee and Bain Capital Partners LLC. They valued the company at $19 billion which will result in paying $37.60 a share for the company; a 10 percent premium over Wednesday's close.
The buyers here are taking a huge gamble. The company has lost over 60 percent of its market value since 2000; and for good reason. Former listeners are now mainly using the Web, iPods and satellite radio as their audio choice. The buyers believe they can cut costs and stop the long slide. Even analysts were surprised by the price offered for the company.
With millions on the line if the current executives were taken out of the picture, the deal allows the Mays brothers, Mark and Randall - CEO and CFO - to stay in their existing positions. If they were removed, 
they would have received over $28 million in severance and options on 1 million shares.
Regardless if the deal is finally approved, Clear Channel will sell 40 percent of its radio stations that are out of the top 100 U.S. markets and are less than 10 percent of the company's revenue. They will also sell their 42 television stations they run.
The company can still seek alternative offers until December 5 under the terms of the agreement.
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