Summary
KKR and their partners know the value of a unique basket assets like this. Accordingly, they quickly moved to get control of this tremendous opportunity, which includes significant market share. They will now be able to sell off the pieces to groups of smallers operators who desperately want these stations at a premium.
Analysis
While broadcast radio will be challenged in the future by Satellite, local radio stations still remain important to local advertisers everywhere. They remain a viable means for local news, sports and talk radio. Both the private equity guys and the owners of clear channel will come out ahead on this one.
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
