History
Clear Channel Communications purchased its first FM station in San Antonio in 1972. The company purchased the second "clear channel" AM station WOAI in 1975. In 1976, the company purchased its first stations outside of San Antonio. KXXO AM and KMOD FM in Tulsa were acquired under the name "San Antonio Broadcasting" (same as KEEZ). Stations were also added in Port Arthur, TX (KPAC-AM-FM from Port Arthur College) and El Paso, Texas (KELP AM (now KQBU AM) from John Walton, Jr.). In 1992, the U.S. Congress relaxed radio ownership rules slightly, allowing the company to acquire more than 2 stations per market. By 1995, Clear Channel owned 43 radio stations and 16 television stations. In 1996, the Telecommunications Act of 1996 became law. This act deregulated media ownership, allowing a company to own more stations than previously. Clear Channel went on a buying spree, purchasing more than 70 other media companies, plus individual stations.
In a few cases, following purchase of a competitor, Clear Channel was forced to divest some of its stations, as it was above the legal thresholds in some cities. In 2005, the courts ruled that Clear Channel must also divest itself of some "border blaster" radio stations in international border cities, such as the alternative rock radio station 91X in Tijuana, Baja California/San Diego.
In 1997 Clear Channel moved out of pure broadcasting when it purchased billboard firm Eller Media, which was led by Karl Eller.
In 1998 it made its first move outside of the United States when it acquired the leading UK outdoor advertising company More Group plc, which was led by Roger Parry; Clear Channel went on to buy many other outdoor advertising, radio broadcasting, and live events companies around the world, which were then re-branded Clear Channel International. These included a 51% stake in Clear Media Ltd. in China.
In 1999, the company acquired Jacor Communications, a radio corporation based in Cincinnati, Ohio.
R. Steven Hicks and Hicks, Muse, Tate & Furst began Capstar Broadcasting in 1996 and a year later had become the largest owner of radio stations in the country, with 243 stations in all. In August 1997, Capstar and Hicks, Muse, Tate & Furst announced plans to acquire SFX Broadcasting Inc., with the resulting company owning 314 stations in 79 markets and ranking as the third-largest radio group by income. A year later, Chancellor Media Corporation and Capstar Broadcasting Corporation announced a merger that would result in Chancellor Media owning 463 stations in 105 markets once the deal was completed in second quarter 1999. Hicks, Muse, Tate & Furst owned 59 percent of Capstar, with 355 stations in 83 markets, and was the largest single owner of Chancellor (which had 108 stations in 22 markets), with 15 percent of the stock. Chancellor Media later became AMFM Inc., which was acquired by Clear Channel in a deal announced October 3, 1999 and valued at $17.4 billion. The resulting company would own 830 radio stations, 19 television stations, and over 425,000 outdoor displays in 32 countries.
In 2005 Clear Channel Communications split into three separate companies. Clear Channel Communications was a radio broadcaster; Clear Channel Outdoor was out-of-home advertising; and Live Nation was live events. The Mays family remained in effective control of all three, and held key executive roles in each (with Mark Mays as CEO of both radio and outdoor and Randall Mays as Chairman of Live Nation).
On November 16, 2006, Clear Channel announced plans to go private, being bought out by two private-equity firms, Thomas H. Lee Partners and Bain Capital Partners for $18.7 billion, which is just under a 10 percent premium above its closing price of $35.36 a share on November 16 (the deal values Clear Channel at $37.60 per share). The new ownership of Clear Channel has also announced that all of its TV stations were for sale, as well as 448 radio stations that were outside of the top 100 markets. All of the TV stations and 161 of the radio stations were sold to a Providence Equity Partners, a private-equity firm, on April 23, 2007, pending FCC approval.
On July 24, 2008, Clear Channel held a special shareholder meeting, during which the majority of shareholders accepted a revised $36-per-share offer from Bain Capital and Thomas H. Lee Partners. The company announced on July 30 that it would offer shareholders either $36 in cash or one share of CC Media Class A common stock for each share of Clear Channel common stock held.
In early 2010 it was announced that the company was facing bankruptcy due to its "crippling debt."
After 21 years, Mark Mays stepped down as President and CEO of Clear Channel on June 23, 2010. Mays will remain as Chairman of the Board, a position he has held for a year prior. The Board engaged Egon Zehnder International, a leading executive search firm, to lead the search for a new CEO. On October 2, 2011, Robert W. "Bob" Pittman was named CEO of Clear Channel.
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