Case | HBS Case Collection | November 2007 (Revised March 2009)

Clear Channel 2006

by Richard S. Ruback and Leslie Pierson


The Board of Directors of Clear Channel Communications, a radio broadcasting and outdoor advertising company, has to respond to a revised proposal from two private equity firms to take the company private. In November of 2006, the Board had unanimously approved an offer of $37.60 per share after going through intense negotiations with numerous firms, but institutional shareholders had indicated that they would reject this offer. In light of this recent news, the two private equity firms had come back to the Board with a revised offer. Now the Board must decide if it thinks the new proposal will satisfy the institutional shareholders, one of which is an activist hedge fund.

Keywords: Decision Choices and Conditions; Private Equity; Governing and Advisory Boards; Negotiation Offer; Privatization; Business and Shareholder Relations;


Ruback, Richard S., and Leslie Pierson. "Clear Channel 2006." Harvard Business School Case 208-083, November 2007. (Revised March 2009.)