Chancellor Media Corp., Irving, Texas, today announced it has terminated its merger agreement with LIN Television Corp. so that Chancellor can focus on its radio and outdoor advertising businesses, after getting pressure from a number of investors. The $1 billion Chancellor, which two months ago began exploring strategic alternatives including a possible sale of all or parts of the company, also announced several executive changes: Jeffrey Marcus, Chancellor's controversial CEO, resigned but will remain on the board; Thomas O. Hicks, chairman of Chancellor Media, adds the title of CEO; James E. de Castro, 46, to president-CEO of the newly created Chancellor Radio & Outdoor Group, from president of Chancellor Radio Group, and remaining a Chancellor director; and R. Steven Hicks, 49, to president-CEO of the newly created Chancellor Media Services Group from president-CEO, Capstar Broadcasting. Mr. de Castro and Steve Hicks also take the title of vice chairman, joining Tom Hicks in the newly created office of the chairman. Steve Hicks has also been named to Chancellor's board. In addition, Chancellor announced the planned purchase by Hicks Muse of up to $500 million in Chancellor stock.
Copyright March 1999, Crain Communications Inc.