Signficant terrestrial radio news here: Clear Channel has said it has agreed to be acquired by Thomas H. Lee Partners and Bain Capital Partners for $18.7 billion in cash. The deal carriers a total value of $26.7 billion, including $8 billion in debt repayment.

As part of the sale, Clear Channel has said it will sell 448 radio stations (they currently own a total of 1,150 station).

It's not a done deal yet though. Clear Channel has the right to solicit bids from 3rd parties through December 7th, and has the option to negociate until January 5, 2007.

[MarketWatch] 

 

This article beautifully illustrates how satellite radio's strategy differs from terrestrial radio's.

Terrestrial must cater to the mass market (albeit a geo-targeted market) because they are an ad-driven model. Wherever the advertising dollars go, the radio stations must follow or suffer the consequences. This is why we're seeing the rapid growth of hispanic-language radio stations in major metropolitan markets.

But satellite is not influenced by advertisers to this degree. Satellite radio has the freedom to cater to more specific niches, and lots of them. Nationwide.

While terrestial seeks to find a niche that appeals to 100 million people; satellite radio instead provides a 100+ niches that each appeal to 1 million people. Welcome to The Long Tail in action.