Hit #131 (Clear Channel)

Clear Channel (CCU), the largest U.S operator of radio stations, is being bought by a group of private equity players, in one of the largest going-private transactions. The cash offer, of $18.7 billion, translates into $37.6/share, a premium of 32.3% over my average cost of $28.43/share.

I had bought CCU shares mostly as a value/turnaround bet, along with a number of traditional media companies. Univision was another big recent buyout in this space. The remaining targets are much smaller, and may not command the same kind of premium.

Tribune (TRB) is also expected to get an offer soon going by recent reports.

Reports of death of traditional media have been vastly exaggerated. Someone like New York Times (NYT) should be able to get a loyal audience to pay for its original content online. While it may take some time, I expect a lot of the leaders to ultimately make the transition and survive, and who knows, even thrive!

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Previous hit - Reader's Digest (#130)