(Part of an
ongoing series on Clear Channel..)
It's been a rough couple of months for the media giant.
First, CC declares a $4.7 Billion loss for Q4 of 2004 (yes, that says Billion and Quarter).
Then, an independent motocross promoter in Chicago wins a $90 Million judgement against CC for tortious interference, the first-ever successful litigation of its kind against the company.
The judge in the case is now considering ordering that $90 Million bonded before CC runs to the protection of the bankruptcy courts...
Last week, CC announced it was "spinning off" (i.e. cutting loose) its radio and concert promotions operations, finally confirming that the company's main reason for existing, that mythical "synergy" between its media holdings, has finally proven a bust.
Now, their second-largest investor is dumping CCU like there's no manana....
more..
Big investor is selling its Clear Channel stock
Sean M. Wood
Express-News Business Writer
Clear Channel Communications' second-largest investor is effectively getting out of the San Antonio-based media giant, disclosing Friday that it is selling its stake in the company.
Dallas-based buyout firm Hicks, Muse, Tate & Furst Inc. has sold 22.5 million of the 37.5 million Clear Channel shares that it owned. Of those, Citigroup bought 16.8 million shares and Clear Channel bought back about 5.7 million shares.
Hicks Muse's remaining shares will be distributed to investors in one of its funds that owned Clear Channel shares....
According to a person familiar with Hicks Muse, the firm had been urging Clear Channel to "strategically realign itself for quite some time," and even though that process has begun with Clear Channel's spinoff announcement, Hicks Muse felt it would take more than a year for the spinoff's benefits to be realized.
Clear Channel shares closed Friday at $30.81, down 79 cents.
Oh, and by the way.. this is what crappy management and poor corporate citizenship looks like..