Missoula News

Clear Channel sells 57 stations in six states

Denver-Based Company Buys Spots on the Western Radio Dial

By Robert Struckman, 11-29-07

A new Denver-based media company called Gap West is buying and is already running 57 radio stations from Clear Channel Communications, including six in Missoula.

The sale has yet to be approved by the Federal Communications Commission, but all signs point to a done deal. Gap West has taken over operations of the stations, which are mostly in Montana, Wyoming and Idaho. Neither party would disclose the terms of the deal.

The sale has been in the works for about eight months, said Skip Weller, head of Gap West. The company incorporated officially on Nov. 1 and is funded primarily by Oaktree Capital Management, a Los Angeles-based private equity company. The same company funds Dallas-based Gap Broadcasting, which bought several dozen stations in Texas, Oklahoma, Arkansas and Louisiana. The two companies will operate independently, Weller said.

The stations involved include all of Clear Channel’s Montana and Wyoming stations as well as the stations in Idaho Falls, Pocatello and Twin Falls, Idaho; in the Tri-Cities and Yakima, Wash.; Duluth, Minn.; and in Burlington, Iowa. (You can find individual stations by searching by state or city here.)

Weller, a 30-year radio veteran, thinks markets like Missoula’s are undervalued by major media conglomerates like Clear Channel.

“These markets have been completely underserved,” Weller said. “To me, certainly, Missoula is like New York. That’s how important it is to me.”

Dave Cowan, who manages the six Missoula stations, said he’s optimistic about a future with Gap West. The recently announced sale ends a long period of uncertainty. Clear Channel announced plans about a year ago to put 448 of its small- and mid-market stations up for sale. (Ray Yeung, a Clear Channel spokesman, said the company wants to focus on the big urban markets. He also emailed this press release.)

“With Clear Channel, we were so off the radar,” Cowan said. “I think it’s going to be a really good thing.”

“I think there are phenomenal opportunities. Just think about your market, think about Bozeman and Laramie,” Weller said.

“We’re going to look at the market and say, ‘What do we think we can do to have some fun with the local listener and pick up an audience.’ It’s not like there’s a hole for a country station or adult contemporary. You have to do a boutique format and have some fun with it,” Weller said.

He said with only 13 markets to work in, his management team will have no trouble giving resources and personal attention to each city. In fact, Gap West could buy more stations, he said.

So, you might ask, what’s the plan once the stations have been revamped and revitalized? Will Gap West go public or will Weller sell to another media conglomerate? Is Gap West in the business of station-flipping?

No, said Weller, though it’s hard to say where things will go. He has no intention to work for a publicly owned company, he said.

“For me, these guys are committed to my ability to take these stations and create more value,” Weller said.

Correction: This story has been altered to correct the spelling of Skip Weller’s name in several references. We apologize for the error.

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