Clear Channel generated $240 million in operating income last quarter. That’s about $960 million a year. Clear Channel owes about $20 billion in long term debt. That means they are throwing off less than a 5% return on what they owe (before non-cash writedowns of station license values, goodwill, depreciation, etc…)
News comes today that one of the Clear Channel private equity firms is going to float $750 million more in 10 year debt in order to be in a position to make required debt service payments – oversimplified, they’re refinancing their mortgage to pull out cash to make minimum payments on their credit cards.
The remaining member of the Mays family that founded Clear Channel is moving away from the operational management. Bob Pittman (formerly of AOL, Seven Flags and Century 21) is loitering in the wings as VP of Digital stuff, but no CEO has been named. Clear Channel just hired a VP of Marketing and Communications who has worked with Pittman at his previous jobs.
There doesn’t appear to be any comnection between any of the above and AOL buying Huffington Post, but the tentacles of The Progressive movement have very deep roots.
“There doesn’t appear to be any connection between any of the above and AOL buying Huffington Post, but the tentacles of The Progressive movement have very deep roots.”
Yeah, well. That and Clear Channel ditching Rollye James on XM/Sirius. She’s definitely the anti-progressive sister to Glenn Beck.