Providence Equity Partners sued for delays on $1.2 billion deal
Clear Channel turns to courts to compel completion of deal for 56 TV stations
Full Story: Static flows over tension in sale of TV stations Source: Providence Journal, February 19th, 2008 Added on February 19th, 2008 at 9:51 am, by Judy He
...Clear Channel said in the lawsuit that Providence has dragged its feet in the $1.2-billion deal for the  TV stations, a deal Providence has sought since October to renegotiate... But Clear Channel believes it can sue to compel Providence to complete the deal, while Providence believes it can’t be forced to close the deal.
The television-station deal is separate from the $19.5-billion sale of Clear Channel to Thomas H. Lee Partners and Bain Capital, and the lawsuit isn’t expected to delay that buyout. The sale includes several Providence radio stations, including WHJJ-AM 920, WHJY-FM, WSNE-FM, and WWBB-FM...
...Providence believes Clear Channel has violated the TV-station pact with its lawsuit. The firm said it now believes it doesn’t owe the $46-million breakup fee if the deal falls apart...
...San Antonio-based Clear Channel Communications Inc. claimed executives of Providence’s Newport Television LLC subsidiary expressed “buyer’s remorse” in October and refused to complete the buyout of stations in cities including Memphis, Tenn., and Syracuse, N.Y., according to a copy of the complaint provided by the broadcaster...
Analysts said concerns about a downturn in advertising tied to a slowing economy may have prompted Providence’s move. Ad sales for radio and TV broadcasters have been falling as automakers cut back ad spending and more advertisers move to the Internet and cable-TV networks...
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