Bargain basement sale of Bear Stearns


The share price of Bear Stearns & Company plunged 47% on Friday to close at 30 bucks amid worries that the investment banking and brokerage firm was in danger of collapse. But that price plunge was just the beginning. After a weekend of urgent negotiations, Bear Stearns yesterday agreed to be acquired by JP Morgan Chase in a stock swap that values Bear Stearns at only two bucks per share. What the move means for the broadcasting industry depends on how the merger plays out. Bear Stearns has been one of the very few brokerage houses remaining to actively cover pure play radio and television stocks. We wait to see what the new owners at JP Morgan Chase will do with Vic Miller and his team.