FOR IMMEDIATE RELEASE AT
MONDAY, SEPTEMBER 16, 1996 (202) 616-2771
TDD (202) 514-1888
JACOR AGREES NOT TO FINANCE TSUNAMI'S PURCHASE OF CINCINNATI
RADIO STATION AFTER JUSTICE DEPARTMENT EXPRESSES CONCERNS
Deal would Increase Jacor's Market Position in Cincinnati
WASHINGTON, D.C. -- Jacor Communications Inc. advised the
Department of Justice that it will not finance Tsunami
Communications Inc.'s purchase of WGRR-FM, a radio station in
Cincinnati. The Department received this assurance in response
to concerns that Jacor's participation in the proposed deal could
adversely affect competition in the Cincinnati radio market.
The Department was also concerned because Jacor disputed
whether its financial backing of Tsunami was subject to the prior
notice provision of the proposed consent decree signed by Jacor
in connection with its acquisition of Citicasters Inc. To
eliminate ambiguity, Jacor has agreed to modify the proposed
consent decree to clarify its obligation to provide notice to the
Department before agreeing to any transaction in Cincinnati
similar to the one with Tsunami.
The Department's proposed consent decree, filed on August 5,
requires Jacor and Citicasters to divest a key radio station in
Cincinnati, WKRQ-FM, and give notice to the Department before
entering into certain kinds of agreements. In the complaint
filed with the proposed decree, the Department alleged that the
proposed Jacor/Citicasters merger, would have substantially
reduced competition in the Cincinnati area, and would have
resulted in higher prices to advertisers.
"Jacor's backing of Tsunami's bid for a major Cincinnati
radio station could have nullified the divestiture of WKRQ," said
David S. Turetsky, Deputy Assistant Attorney General in the
Antitrust Division. "Transactions that raise serious competitive
concerns, like Jacor's arrangement with Tsunami, are exactly the
kinds of deals the consent decree is intended to cover."
The modified consent decree was filed today in U.S. District
Court in Cincinnati.
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