Interesting: Clear Channel Going Private?

Yesterday, CNBC reported that Clear Channel (the largest radio station group in the US) has been in discussions with a number of private equity firms. Presently, Clear Channel is a publicly traded company, with the Mays family as the largest shareholder. The aim, it is reported, is to get the private equity firms to work with the Mays family to fund a buy-out – which would take Clear Channel private.

Why would that matter to you and me? Well, as much as it seems that Clear Channel is free to do as it likes now with the massive megaphone that is 1200 radio stations (in the US alone), as a private firm, it would have even less of a responsibility to the public for its actions and programming decisions. As a private firm, not accountable to public shareholders or the worries of quarterly earnings, it could afford to take the hit associated with, say, broadcasting stronger political viewpoints . . .

To be clear – there’s nothing inherently nefarious in taking it private (and considering the stock performance, it’s understandable), but should Clear Channel get more interested in being nefarious, being private will make it a whole lot easier. The FCC will have to approve any such transaction, and given all the friends that Clear Channel has made over the years, it sure could be an interesting docket . . .