Radio giants Chancellor Broadcasting and Evergreen Media have struck a deal to buy the TV-radio station advertising rep firm Katz Media for $373 million in cash.
The deal, still subject to regulatory and shareholder approval, values Katz Media at about $155.1 million, with Katz shareholders receiving $11 per share in the transaction.
Chancellor and Evergreen, which are in the midst of a merger that will make the resulting Chancellor Media Corp. the nation’s largest radio group, will also assume $218 million in debt held by Katz. The deal has been approved by boards of the three publicly traded companies.
New York-based Katz Media has about 1,500 employees spread among 65 regional sales offices. A spokesman for Chancellor and Evergreen said no immediate layoffs are planned and that Katz’s present management team will be retained. At present, Katz Media sells local advertising time for more than 2,000 radio stations, 340 TV stations and 1,390 cable systems nationwide.