NEW YORK (CNNfn) - Clear Channel Communications Inc. agreed Thursday to buy rival Jacor Communications in a deal valued at $4.4 billion, including the assumption of debt.
The tax-free, stock-for-stock transaction will create the nation's second-largest radio broadcaster, based on number of radio stations, and the third-largest by revenue as well as the world's largest out-of-home advertising company.
The combined company will own or operate 454 radio stations in 101 U.S. markets.
The boards of both companies already have approved the merger, which is expected to close by Sept. 30, 1999.
Jacor (JCOR) will operate as a separate subsidiary of Clear Channel (CCU) and no significant changes are expected to its operations.
Once the merger is completed, Jacor shareholders will own roughly 25 percent of the combined company.