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Chancellor ends LIN deal
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March 15, 1999: 9:09 a.m. ET
Firm to focus on radio, advertising; sets Internet plan, to get $500M
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NEW YORK (CNNfn) - Chancellor Media Corp., the big radio station owner that put itself up for sale last month, said Monday it has no merger to announce but will get a new $500 million investment from its biggest shareholder and is ending a planned merger with LIN Television.
Chancellor, which also has announced a $4.1 billion merger with Capstar Broadcasting -- a deal that would make it the nation's biggest radio operator -- said it held talks about another merger or other deal but has found no partner.
Chairman Tom Hicks said some parties "may want to propose a strategic transaction in the future," but that no deal is being announced now given the current business and regulatory climate.
Chancellor said instead it will end its pending merger with LIN Television and concentrate on its radio operations. It also said that Hicks, Muse, Tate & Furst, the Texas investment firm that owns about 15 percent of Chancellor and a stake in LIN, will buy another $500 million in Chancellor stock, boosting its stake about 29 percent.
Chancellor (AMFM) also reshuffled its top management and said it will explore e-commerce deals for the Web sites of each of its 105 stations in 22 major markets. Its deal with Capstar (CRB) would give it 469 stations in 106 markets.
Chancellor said the management realignment will save $15 million, adding it has no plans to cut jobs at its operating units under the plan.
Under the realignment, former Chancellor CEO Jeffrey Marcus resigned from that post but will remain on the company's board. Tom Hicks has taken the CEO post.
Chancellor said it will take a charge of $20 million to $25 million in the first quarter to pay severance and for other costs of the realignment. It also said Hicks Muse will build LIN as a separate company.
Chancellor also owns Katz Media, a seller of advertising spots, 36,000 billboards and outdoor displays in 37 states and network-affiliated TV stations. Its stock ended unchanged at 44-3/8 Friday but was quoted at 41-1/2 pre-open Monday. 
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