| FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 21, 1999
TDD (202) 514-1888
JUSTICE DEPARTMENT REQUIRES CAPSTAR TO SELL FIVE RADIO STATIONS
WASHINGTON, D.C. — The Department of Justice announced today that it reached a settlement with Capstar Broadcasting Corporation that will allow the company to go forward with its $190 million acquisition of Triathlon Broadcasting Company as long as Capstar sells five radio stations in Wichita, Kansas.
Without the divestiture, Capstar could have controlled more than 45 percent of the Wichita radio advertising market. The transaction also would likely have raised prices for advertising on radio stations in the Wichita metropolitan area.
"The proposed settlement protects national and local advertisers from having to pay higher prices for radio advertising in Wichita," said Joel I. Klein, Assistant Attorney General in charge of the Department's Antitrust Division. "By filing the settlement with the Court, we can allow Capstar to close their transaction with Triathlon while still protecting Wichita consumers." Under the agreement, Capstar will sell five stations -- KEYN-FM, KWSJ-FM, KNSS-AM, KFH-AM, and KQAM-AM -- to a buyer that must be approved by the Department.
In an earlier settlement, announced on March 5, 1999, the Department and Capstar agreed that Capstar would sell the same five stations to Connoisseur Communications Partners in order to address antitrust concerns. Capstar and Connoisseur later abandoned their agreement
Capstar is based in Austin, Texas and owns approximately 309 stations in 76 markets. Triathlon is based in San Diego, California and owns 31 radio stations in six markets.
As required by the Tunney Act, the proposed Final Judgment, along with the Department's competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed final judgment during a 60-day comment period to Craig W. Conrath, Chief; Merger Task Force; Antitrust Division; U.S. Department of Justice; 1401 H Street NW, Suite 4000; Washington, D.C. 20530. At the conclusion of the comment period, the Court may enter the Final Judgment upon a finding that it serves the public interest.