Dateline: June 20, 1996 - 5PM -
Westinghouse Buys Infinity
For $4.9 Billion!
CBS owner Westinghouse Electric Corp. announced it was going to buy
the company behind Howard Stern for $3.9 billion and assume $1 billion
of Infinity's debt, bringing together the two biggest players in the radio-station
business.
Westinghouse's all-stock purchase will create a radio-station operator
with over 80 stations and revenue of about $1 billion a year, the companies
said. Aside from the televison network, CBS owns 15 TV stations.
The new radio group will operate in 16 markets, with 69 of the stations
in the top 10 markets, including New York and Los Angeles. Infinity and
Westinghouse shareholders have already agreed to back the transaction,
the companies said, in a December vote.
Infinity, the nation's biggest independent radio company and the second-largest
overall, owns and distributes "The Howard Stern Show" and "Imus
in the Morning." Westinghouse, the nation's No. 1 radio company, also
owns the CBS network, TV stations and news division anchored by Dan Rather.
It is unclear whether the merger will raise antitrust objections. News
of the deal comes amid a flurry of mergers in the radio industry.
Mel Karmazin, the founder of Infinity, will lead the combined radio
unit. Karmazin is among the Infinity shareholders group holding the majority
of voting shares that agreed to vote for the merger. Michael H. Jordan,
chairman and chief executive of Westinghouse, has recommended Karmazin
become a Westinghouse board member after the deal is completed.
Courtesy Of (AP) NEW YORK
©1996 The K.O.A.M. Newsletter. All Rights Reserved.
