To: Ed Perry who wrote (8557 ) 5/19/1999 11:13:00 PM From: DennyKrane Respond to of 17679
HUMMM, very Speculative! May 20, 1999 Chancellor Media to Form Web Units, Seeks Partners By CARLOS TEJADA Staff Reporter of THE WALL STREET JOURNAL DALLAS -- Chancellor Media Corp. said it will form three Internet divisions and will seek partnerships with a handful of Internet companies to expand its electronic reach. The radio and billboard concern, which also plans to change its name to AMFM Inc., said it will consider offering shares of one or more of the businesses to the public, though an offering would depend on future market conditions. The moves follow Chancellor's announcement this year that it would form a new-media business and seek some sort of presence on the Internet. People familiar with the situation say Chancellor has had talks with America Online Inc. and other companies, though final agreements haven't been reached. "There are various ways we could interface with the companies we're talking to," said R. Steven Hicks, president and chief executive officer of Chancellor's new-media group. "We're going to spend the next several weeks determining who partners are going to be, going forward." He added that he expects the company to form alliances with perhaps three or four other companies instead of a broad, exclusive contract with one company. Mr. Hicks, brother of Chancellor Chairman and Chief Executive Thomas O. Hicks, said the Internet businesses will have a budget of "less than $100 million." One new division, AMFM Interactive Inc., or AMFMi, will build a network of Web portals tied to the company's radio stations. A second division, AMFM.com, will offer streaming-media services and create Internet-only stations. The third, AMFM Equities, will offer Internet start-ups air time and other promotional services in return for early equity stakes. In recent months, Internet companies have moved to secure radio content to carry, and broadcast companies have sought Internet outlets. Earlier this year, Chancellor watched as once-humble Broadcast.com Inc., which broadcasts audio over the Internet, agreed to be acquired by Yahoo Inc. for $5.3 billion in stock. Tom Hicks was an early Broadcast.com shareholder. Chancellor said its name change is subject to shareholder approval.