Clear Channel and SFX Announce Merger

Clear Channel Communications, Inc and SFX Entertainment, Inc have entered into a definitive merger agreement. The move will vastly expand Clear Channel's sphere of influence, for SFX is the world's largest promoter, producer and venue operator for live entertainment events. Clear Channel operates 867 radio and 19 television stations in the United States reaching over 120 million people weekly. It also has a wholly owned subsidiary - Premiere Radio Networks - which broadcasts to 40 million people weekly. Additionally, it has equity interests in over 240 radio stations internationally. SFX, meanwhile, currently owns or operates 120 live entertainment venues across the US markets and as we reported last year, is establishing a foot-hold in the UK market. In August, SFX Entertainment bought the UK's Apollo Leisure Group, which owns 23 theatres across the UK, for around US$254 million. The deal was SFX's first major investment in UK venues and included famous theatres such as the Lyceum, in London, The Playhouse, in Edinburgh, and the Palace, in Manchester. The current transaction values SFX Entertainment at approximately $4.4 billion. This includes the assumption of approximately $1.1 billion of SFX's debt net of cash. The deal is expected to be completed later this year subject to the vote of SFX's stockholders, and customary regulatory approvals and closing conditions.

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