FOR IMMEDIATE RELEASE                       	              AT
MONDAY, AUGUST 5, 1996                                      (202) 616-2771
							TDD (202) 514-1888

JUSTICE DEPARTMENT REQUIRES JACOR TO SELL
CINCINNATI RADIO STATION
The Department's First Radio Merger Challenge
WASHINGTON, D.C. -- The Department of Justice today required 
two of the nation's largest radio station owners--Jacor 
Communications Inc. and Citicasters Inc.--to divest a key 
radio station, WKRQ-FM, in Cincinnati before permitting them 
to proceed with their $770 million merger.  The restructured deal 
will preserve competition among Cincinnati radio stations and 
benefit both advertisers and consumers.

The Department said that without the divestiture, the 
companies would dominate the market for the sale of radio 
advertising time in Cincinnati and the surrounding areas.

The radio industry is in the midst of rapid consolidation 
following passage of the Telecommunications Reform Act of 1996, 
which relaxed previous limits on radio ownership.  The 
Jacor/Citicasters acquisition is one of the first transactions 
announced following passage of the Act, and is among the largest 
yet proposed.   

Anne K. Bingaman, Assistant Attorney General in charge
 of the Department's Antitrust Division, said, "This 
acquisition could have reduced competition and made it more 
difficult for businesses of all sizes to get competitive rates
 when buying radio advertising time in Cincinnati." 

The Department's Antitrust Division filed a civil 
antitrust suit in U.S. District Court in Cincinnati to block 
the proposed deal.  At the same time, a proposed settlement 
was filed that, if approved by the court, would settle the suit.  


"The Telecommunications Act repealed the old limits on how 
many stations one company could own in a given market, but it did not 
grant radio group owners a license to monopolize the sale of 
advertising time," said Bingaman.

"For many businesses, radio advertising is important because 
it offers a unique way to communicate with potential customers.  
The Department will scrutinize each proposed radio merger to 
determine whether it will have anticompetitive effects," Bingaman added.

In its antitrust complaint, the Department alleged that a 
combination of Jacor and Citicasters would control more than 
50 percent of the sales of radio advertising time in Cincinnati, 
and could enable the companies to increase prices to advertisers 
and substantially reduce competition in the $80 million 
Cincinnati radio advertising market.  
Jacor and Citicasters agreed to divest WKRQ-FM, a leading 
Cincinnati contemporary music station, to an independent buyer.  
"Maintaining WKRQ's independence from Jacor and Citicasters will 
ensure that advertisers have choices when purchasing air time," 
Bingaman said.

The settlement also requires Jacor to provide advance notice 
to the Department if it wants to acquire more radio stations in the 
Cincinnati area, or enter into joint management or advertising sales 
arrangements with other stations there.

Other aspects of the merger, which involves the purchase of 
18 radio stations and two television stations in eight cities, were 
not challenged by the Department.

Jacor Communications Inc. and Citicasters Inc. are both 
headquartered in Cincinnati.  Jacor owns 21 radio stations in seven 
states.  Citicasters owns 19 radio stations in seven states.  These 
figures exclude radio stations that Jacor will gain through its separate 
acquisition of Noble Broadcast Group Inc. 

As required by the Tunney Act, the proposed consent decree will be 
published in the Federal Register, together with the Department's 
competitive impact statement.  Any person may submit written comments 
concerning the proposed consent decree during a 60-day comment period 
to Donald J. Russell, Chief, Telecommunications Task Force, Antitrust Division, U.S. 
Department of Justice, Room 8104, 555 4th Street N.W., 
Washington, D.C. 20001 (202) 514-5621.

At the conclusion of the 60-day comment period, the federal district court in Cincinnati may enter the consent decree upon finding that it serves the public interest.               

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