Clear Channel to Buy Ackerley Group

Top U.S. radio broadcaster Clear Channel Communications Inc. said it is buying media and broadcasting company Ackerley Group Inc. for $495 million in stock, the latest in a string of deals designed to boost its national presence.

The acquisition solidifies Clear Channel as a national player in the increasingly important outdoor advertising market, putting it on firm footing against Viacom Inc.’s Infinity Outdoor business.

“This transaction allows Clear Channel to enter Boston, Seattle and Portland, Ore., three of the top 25 U.S. outdoor advertising markets,” Clear Channel Chairman and Chief Executive Lowry Mays said. Those markets are the only top ones where Clear Channel lacks outdoor business. Ackerley is the dominant player in the three markets.

Under the agreement, San Antonio-based Clear Channel would pay 0.35 share for each Ackerley share, which would value Ackerley at $14.11 a share, a 28% premium over its closing price Friday. The stock rose $2.40, or about 21.8%, to close at $13.40, while Clear Channel shares were down $1.01 at $39.30, both on the New York Stock Exchange.