Tattler 3/28
Total Page：16
File Type：pdf, Size：1020Kb
Volume XXXIV• Number 13 • March 28, 2008 The possible collapse of the Clear Channel deal has private equity firms Thomas H. Lee Partners and Bain Capital Partners filing complaints in the Supreme Court of the State of New York and the Texas State Court against Citigroup, Morgan Stanley, MAIN STREET Credit Suisse, The Royal Bank Of Scotland, Deutsche Bank Presents and Wachovia to live up to their agreements to financially float TheThe ConclaveConclave the sale. The lawsuit demands that the banks pay $26 billion in damages for “tortious interference” and that it either be paid or AA TT TT LL EE resolved in court before the merger agreement expires on June TT RR 12th. Clear Channel has hired settlement bulldog Joe Jamail for the Texas suit. The bank’s hesitation to sign off on the terms Publisher: Tom Kay Editor: Benjamin Holsen of the deal is obvious. Clear Channel stocks are trading at $10 Cartoons Suggested by Lenny Bronstein & Jay Philpott less than the buyout price and it would be a very risky proposition The Learning Conference Understands! While Dr. John Gray in a shaky economy. The banks estimate a $2.7 billion dollar hit cracked the communications code with his best-selling book, Men under the current terms. Citigroup spokeswoman Danielle are from Mars, Women are from Venus, this June’s Conclave Romero-Apsilos said, “The bank group presented the sponsors Learning Conference brings the discussion home to the industry with credit agreements fully consistent and compliant with the with a very special session, “Ms. Understood” – an hour that will commitment letter...The bank group has been and remains seek to overcome miscommunication between men and women prepared to honor the obligations as set forth in that letter. We in the workplace. The session is a part of AT THE believe the suits are without merit and will contest them CROSSROADS, June 26th-29th in Minneapolis. At the heart of vigorously.” Bain Capital and THL Partners issued the following this session is the notion that understanding communication joint statement: “We are disappointed and dismayed that the differences between men and women is hard enough in romance banks have chosen not to fund the transaction under the terms and even more difficult in our work environment. That of the binding commitments they entered into almost a year ago. miscommunication between men and women can stand in the It seems clear that lenders’ remorse set in when credit markets way of mutual success more often than we care to recognize. worsened. In our long histories, we have only used litigation as a Session organizer Saga Communications’ Michelle Novak last resort. We regret the banks have left us no choice but to added, “The experienced faculty we have gathered will share notify them that they are in breach of their obligations under their helpful insights about how all Learning Conference attendees – financing commitments. We continue to believe our investment women AND men - can advance their careers with some careful in Clear Channel will be rewarding for our investors over the foresight.” The session, moderated by Ian and Margery, married long term, and remain grateful to the company and its morning show at FM 107, Minneapolis, will provide tips and management team for their constructive actions during the examples of how to better communicate in the workplace, as process.” Clear Channel CEO Mark Mays adds, “The financial well as an understanding of the styles and strengths that each risk to the banks in this suit dwarfs any risk they think they have gender brings to the work table. Faculty members include: Mary in funding the debt. The behavior of these banks is irresponsible, Niemeyer – General Manager, CBS Radio, Minneapolis; Wendy unprofessional and unjustified. The Defendants have made clear Paulson – Program Director, WCCO-AM, Minneapolis; Larry that they are determined, by any means possible, to destroy the Rosin – Co-Founder / President of Edison Media Research, merger and thus avoid their obligation to fund, as they are required New Jersey. “Ms. Understood” will happen at 10:00am, Saturday, legally to do.” In a separate e-mail to Clear Channel employees, June 29th. The presence of this session at this summer’s Mays added: “Clear Channel would not have agreed to this Conference is another result of the Conclave’s newly formed merger if the financing as represented by the banks’ commitment Women’s Education and Career Advancement Network letter wasn’t so solid; we believe the banks have an inescapable (WECAN) committee – a committee whose focus is on legal obligation to fund the transaction ... While the banks may developing, mentoring and empowering women in the radio have ‘lenders’ remorse’, that is not Clear Channel’s problem and industry. The complete agenda and registration details for the we will make sure that our employees and shareholders are not Conclave: At the Crossroads, slated for June 26th-29th, 2008 the innocent victims of their unlawful conduct.” Let the battle can be found online at www.theconclave.com. begin…or perhaps more appropriately…let the battle continue! THE 33RD CONCLAVE LEARNING CONFERENCE David Rehr Ed Schultz Rita Cosby Isaac Hayes President, NAB Jones Radio Author/Commentator Artist/Songwriter JUNE 25-29, 2008 Tuition $299 Learning-Sharing-Networking Student/Free Agent $149 MARRIOTT CITY CENTER Over 40 Sessions/Events Details at www.theconclave.com MINNEAPOLIS Tuition covers many meals/snacks! MAIN STREET MARKETING & PROMOTION, 4517 MINNETONKA BLVD #104, MINNEAPOLIS, MN 55416 PHONE/FAX: 952.927.HITS (4487)/927-6427 Publisher: Tom Kay at tomk@main-st.net Web: www.main-st.net Jupiter Rising ELECTROPOP Over 20 Million Impressions!* CHIME CC ENTERTAINMENT Over 8,200 Total Spins!* C *Mediabase24/7, Week ending 3/19/08 In a move that seemed to catch the industry by surprise, The consumer when that deal goes down. And while that should turn Justice Department approved the Sirius Satellite Radio’s $5 the corners of his mouth upward, the following should make him billions buyout of rival XM Satellite Radio. Opposition groups break out in a big ‘ol wide-mouthed grin: None of those channels argued the merger creates a monopoly but regulators said the will be able to be as easily heard in our nation’s kitchens, merger is not likely to substantially hurt competition or consumers. bathrooms, backyards and ballparks as those belonging to The FCC hasn’t approved the merger yet, but Chairman Kevin terrestrial radio. You see, it ain’t the number of channels available Martin indicated last week it was close to happening. As to our public that determines competition, Mr. Smythe. It’s what expected, many radio groups have reacted – and not in a positive we put on them. If the monumental events of this week force the way. Greater Media CEO/Pres. Peter Smyth reminded the FCC captains of our industry to practice something OTHER than of it’s continued reluctance to deregulate terrestrial radio in the business as usual, these past 7 days just might go down as the context of a merged satellite radio competitor. “The Department week REAL radio was reborn in America. For this, we can only of Justice decision is surprising and disappointing,” Smyth said. hope! - TK “I find it disturbing that the merger was granted, at least in part, because the satellite companies flaunted the rules that were Reminder: 30 Under 30 Nominations Close Monday! Says established for them, including the requirement that both services Edison Media Research’s Sean Ross, “The deadline for could be heard on standard satellite radio receivers. But submitting a nomination (or two!) for that budding young fundamentally, I still do not understand how satellite radio is able broadcasting star is Monday, March 31st. This gives you the to operate a monopoly with hundreds of channels in every market, weekend to come up with your last minute entries to get your while highly competitive local radio broadcasters are limited to a favorite under-30 broadcaster recognized at our special event at handful of stations in each market. I hope the FCC addresses this year’s Conclave Learning Conference. Be sure to tell us as these blatant inequities in its decision.” much as you can about why this person deserves merit!” Nominations can be entered at http://infinitedial.com/ Commentary: It has been quite a week in radio, perhaps one 30under30.php. The winners will be announced in April, and each without parallel. On the one hand, a deal that was a slam-dunk will be recognized at the special Edison 30-Under-30 Luncheon just a few months ago involving Clear Channel/Lee Partners/ on Saturday, June 28th. The luncheon will be made even more Bain Capital now looks like it has come totally unraveled. On special with an appearance by Rock & Roll Hall of Famer, Isaac the other, a deal that absolutely no one gave a chance to succeed Hayes with songwriting partner, David Porter – presented by a year ago – the XM/Sirius merger – could become reality by BMI. This will truly be an event NOT to be missed! this year’s Learning Conference. Borrowing a favorite line from BLAZING SADDLES, “What in tarnation is going on here?” Truth TNS Media Intelligence ad spending figures for 2007 show radio is, I don’t know. But I can tell you what’s not going on here: ad spending off 3.5% to $10.7 billion and was surpassed for the business as usual. The Clear Channel conundrum signals that first time by Internet ad spending. Internet sales rose 15.9% to financial institutions have begun looking at radio differently. The $11.3 billion, trailing TV, magazines, and newspapers but ahead DOJ clearance for the satellite merger signals that the of radio and outdoor.