Both the Wall Street Journal and Reuters reported yesterday that Providence Equity Partners has gotten cold feet and may try to get out of its 1.2 billion bucks deal to acquire Clear Channel Television. The deal has been pending since last April and Providence had already announced deals to divest some of the stations to other parties. Clear Channel’s stock dropped sharply when the report was posted on WSJ.com yesterday afternoon. Providence reportedly wants to either renegotiate the purchase price or pay the 45 million breakup fee and walk away.
"We have a great television group that is poised to have a record-breaking year in 2008. If for some reason the deal does not close we would look forward to keeping these terrific assets in the Clear Channel family," the company said yesterday in an email to RBR/TVBR.
RBR/TVBR obervation: No matter what this deal is going to have a hard time closing, period and probably not on time. Look for sometime in 2008 is our hunch.