Radio Station Operators to Merge

Two of the nation’s biggest radio station operators agreed to merge last week. Clear Channel Communications Inc.’s $15.9 billion acquisition of AMFM Inc. is expected to greatly consolidate media ownership nationwide, including in the Los Angeles market.

If the deal is approved by regulators and shareholders, Clear Channel will become by far the largest radio station owner in the nation. Its 830 stations would generate twice as much cash as those of the next-largest company, CBS Corp.’s Infinity Broadcasting.

In addition, the combined Clear Channel-AMFM will own some 425,000 billboards, 19 television stations and Katz Media, a firm that represents electronic media. All those operations would generate more than $5 billion in annual advertising revenues, roughly the same amount as Walt Disney Co. and News Corp.

The pending acquisition of AMFM is the latest in a three-year spree of deals by Clear Channel. In April, it completed its acquisition of Jacor Communications, another major media company.