The U.S. Justice Dept., in its first antitrust suit to block a radio station acquisition, moved against Chancellor Media Corp.'s $54 million purchase of four SFX Broadcasting-owned radio stations on Long Island, N.Y. The suit also seeks to terminate a temporary local marketing agreement allowing Chancellor to manage the SFX stations. The Justice department said the deal gives control of 65% of radio ad sales in the Suffolk county market to Chancellor. Chancellor contends that because Suffolk county should be considered part of the larger New York City metro radio market, its purchases would not harm competition.
Copyright November 1997, Crain Communications Inc.