A private equity bidding consortium of Thomas H. Lee and Bain Capital emerged the victor in the auction of Clear Channel Communications, beating the competing consortium which had been working with the Mays family for months to put together a buyout of the company's public shareholders. The winning bid totals about 18.6 billion. Add in some 8.1 billion in debt and the buyout values Clear Channel at around 26.7 billion. In a most unusual move, Mark and Randall Mays will stay on to run the company, despite the fact that they had been working with the other bidding group.

At the same time, Clear Channel announced plans for some large-scale station sales to optimize its portfolio. Mark Mays says 448 of the current 1,150 radio stations will be put up for sale - all of them outside the top 100 markets. Also, the entire 42-station Clear Channel Television group is being put on the market. The company said the assets being put up for sale account for less than 10% of Clear Channel's total revenues.

The sale of Clear Channel to the Lee/Bain group is subject to regulatory approvals and a vote of Clear Channel's shareholders. It was unanimously approved by the independent directors of Clear Channel. The planned station sales are not contingent upon closing of the buyout, according to the announcement issued this morning.

RBR & TVBR will continue to follow this story so stay tuned to your morning epaper.