Chancellor to Buy Whiteco Billboard Unit

Chancellor Media Corp., already set to become the largest U.S. radio broadcaster, said it’s acquiring Whiteco Outdoor Advertising in a $930-million deal that would make it one of the nation’s top five billboard operators. Whiteco, a unit of Merrillville, Ind.-based Whiteco Industries Inc., is the largest privately held outdoor advertising company in the United States, with 21,800 outdoor display faces in 34 states. Executives of Dallas-based Chancellor said the deal is its last major acquisition in an $8-billion buying spree that has created a multimedia empire with radio, television and billboard properties across the country. With many of those holdings in the same markets, Chancellor plans to offer one-stop shopping to advertisers with packages of TV and radio spots and billboard space. Jeffrey Marcus, Chancellor’s president and chief executive, said Whiteco’s operations overlap with 54 markets served by Chancellor’s radio and television stations and complements Chancellor in major markets such as Chicago, Dallas, Orlando, Indianapolis, Milwaukee and Providence, R.I. The deal, subject to regulatory approval, is expected to close in the fourth quarter. Chancellor shares fell $5.56 to close at $35.69 on the New York Stock Exchange.