Jacor

Jacor Communications was a media corporation, existing between 1987 and 1999, which owned many radio stations in the United States. In 1998, Jacor was purchased by Clear Channel Communications, now iHeartMedia, for $2.8 billion.[1]

Jacor Communications
TypeCorporation
IndustryRadio network
FateAcquired by Clear Channel Communications & reorganized into iHeartMedia
SuccessoriHeartMedia
Founded1987
Defunct1999
HeadquartersCincinnati, Ohio
Key people
Terry Jacobs, Frank Wood, Randy Michaels
ParentIndependent (1987-1992)
Zell Chillmark (1992-1996)
Citicasters (1996-1999)

Jacor Communications began with three religious stations and went on to acquire dozens of radio stations between 1992 and its sale to Clear Channel in 1999. It also owned a few television stations, including WKRC-TV in Cincinnati.

History

Jacor Communications was founded by Terry Jacobs.[2] Jacobs incorporated Jacor Communications in 1979 and purchased three religious stations in 1981.[3][4] In June 1989, Jacor purchased Telesat Cable, a Northern Kentucky cable provider, for $5 million,[5] which it later sold in May 1994.[4] In 1993, an investor named Sam Zell paid $80 million from the Zell Chillmark fund to purchase controlling interest in Jacor.[6]

In 1992, the Federal Communications Commission increased the number of radio stations a single company could own in one city to 3AMS and 3FMs.[7] After this change, Jacor began purchasing stations, including WKRC Radio in Cincinnati in 1993.[8]

On February 6, 1996, Jacor announced plans to acquire Noble Broadcast Group Inc for $152 million.[9] After the passing of the Telecommunications Act of 1996, Jacor began buying more radio stations.[10]

On February 13, 1996, Jacor announced it would buy Citicasters for $770 million.[11] As part of the merger, Jacor acquired WKRC-TV, a Cincinnati CBS-affiliate television station, and WTSP, a television station in Tampa, Florida.[12][13] In September, Jacor announced WTSP would be sold to Gannett Co. in exchange for three radio stations.[14]

In May 1993, founder and CEO Terry Jacobs left Jacor.[15] The VP of Programming and COO, Randy Michaels, was named President of the company that year, and in 1996, he was promoted to CEO.[16] Jacor's corporate headquarters were in downtown Cincinnati from the mid-1980s through 1996 when they moved across the Ohio River to Covington, Kentucky. In 1997, Jacor acquired the assets of Nationwide Communications.[17]

In 1999, Jacor was sold to Clear Channel Communications for $3.4 billion in stock.[18][19] Clear Channel also assumed approximately $1.2 billion of Jacor's debt.[18][19] At the time of its acquisition, Jacor was the third-largest provider of syndicated radio programming,[20][21] owning 230 radio stations and Premiere Radio networks (a radio syndication company), as well as disseminating The Rush Limbaugh Show and the Dr. Laura Schlessinger show.[20]

Clear Channel named Randy Michaels CEO and chairman of Clear Channel Radio in 2000.[22] In 2008, private equity firms Thomas H. Lee and Bain Capital Partners completed a buyout of Clear Channel Communications.[23]

References
  1. Myerson, Allen (9 October 1998). "THE MEDIA BUSINESS; Clear Channel to Buy Jacor For $2.8 Billion in Stock". New York Times.
  2. Richman, Tom (1986-07-01). "Rising Values". Inc.com. Retrieved 2019-07-18.
  3. "Radio's big bully | Salon.com". 2019-06-06. Archived from the original on 2019-06-06. Retrieved 2019-07-18.
  4. "Commission File No. 0-12404 Jacor Communications". Retrieved 18 July 2019.
  5. "28 Apr 1991, Page 91 - The Cincinnati Enquirer at Newspapers.com". Newspapers.com. Retrieved 2019-07-18.
  6. Curtis, Richard (20 October 1997). "Sam Zell may be shopping Jacor". www.bizjournals.com. Retrieved 2019-07-18.
  7. Andrews, Edmund L. (1992-03-13). "THE MEDIA BUSINESS; F.C.C. Loosens Restrictions On Owning Radio Stations". The New York Times. ISSN 0362-4331. Retrieved 2019-07-22.
  8. Cincinnati Magazine. 1994. p. 26.
  9. Reuters (1996-02-06). "Company News;jacor Communications to Buy Noble Broadcast Group". The New York Times. ISSN 0362-4331. Retrieved 2019-07-22.
  10. Brotman, Stuart (2006). Communications Law and Practice. p. 38. ISBN 9781588520708.
  11. "Citicasters to Be Purchased by Radio Firm Jacor". Los Angeles Times. 1996-02-14. Retrieved 2019-07-30.
  12. "Jacor Communications Inc". Retrieved 30 July 2019.
  13. Nielsen Business Media, Inc. (5 October 1996). Billboard. Nielsen Business Media, Inc. p. 101.
  14. "Gannett Announces Agreement with Jacor Communications". TEGNA. 1996-09-26. Retrieved 2019-07-30.
  15. Curtis, Richard (9 August 1999). "Merger would redraw market". www.bizjournals.com. Retrieved 2019-07-30.
  16. Carr, David; Arango, Tim (19 October 2010). "Tribune Board Said Ready to Oust Chief Executive". Herald-Tribune.
  17. Peers, Martin (1997-10-28). "Jacor's Nationwide". Variety. Retrieved 2019-06-28.
  18. Journal, Alejandro Bodipo-MembaStaff Reporter of The Wall Street (1998-10-09). "Clear Channel Wins Bidding Contest, Agrees to Buy Jacor Communications". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-08-01.
  19. Nolan, John. "Clear Channel Buys Jacor". AP NEWS. Retrieved 2019-08-01.
  20. Morgan, Richard (1998-10-09). "Clear Channel buys Jacor". Variety. Retrieved 2019-08-01.
  21. News, Bloomberg (1999-08-04). "Clear Channel Buying 5 FM Radio Stations". The New York Times. ISSN 0362-4331. Retrieved 2019-08-01.
  22. "Clear Channel Taps Top Management". Radio World. 2000-05-22. Retrieved 2019-08-01.
  23. "Bain, Thomas H. Lee complete Clear Channel buyout". Reuters. 2008-07-30. Retrieved 2019-08-01.
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