The No. 2 and No. 3 radio station groups, Chancellor Media Corp., Dallas, and Capstar Broadcasting Corp., Austin, Texas, announced a $17 billion stock merger today that would create the largest radio broadcasting company with combined revenues of $2.3 billion and 463 stations in 105 markets. The new entity will retain the Chancellor name and operate stations in 11 of Chancellor Outdoor's 23 outdoor board markets.
Hicks, Muse, Tate & Furst is the largest shareholder in both Chancellor and Capstar. Thomas Hicks will serve as chairman of the new combined company. Jeffrey Marcus, president-CEO of Chancellor, will retain that title at the combined company. Capstar President-CEO R. Steven Marcus will be named vice chairman of the new company.
Copyright August 1998, Crain Communications Inc.