Clear Channel Communications Inc

Clear Channel Communications Inc., which is examining whether to sell all or parts of itself, said Monday that third-quarter earnings fell 9.5%, but the largest operator of radio stations in the country eked out higher-than-expected profit and revenue. Clear Channel said net income for the three months ended Sept. 30 fell to $185.9 million, or 38 cents a share, from $205.5 million, or 38 cents, last year, which included profit of $33.6 million from discontinued operations.

Private equity groups Providence Equity Partners, Blackstone Group and Kohlberg, Kravis Roberts & Co. are in advanced discussions to buy the largest U.S. radio company, Clear Channel Communications Inc., a source familiar with the situation said Wednesday. Clear Channel, which has more than 1,200 stations, earlier on Wednesday had responded to reports that it was considering offers to be taken private by saying it had hired Goldman, Sachs & Co. to help it evaluate strategic options.

Radio station operator Clear Channel Communications Inc. said Tuesday that its second-quarter earnings fell more than 10% as higher operating costs offset a gain in revenue. Net income fell to $197.5 million, or 39 cents a share, from $220.7 million, or 40 cents, a year earlier. Analysts were expecting per-share profit of 41 cents, according to a survey by Thomson Financial. Year-over-year revenue rose 7% to $1.85 billion, exceeding analysts' estimates of $1.8 billion.

Clear Channel Communications Inc. on Wednesday posted a higher profit as its radio division outpaced the industry in revenue growth after it cut back commercial airtime, which boosted ratings and pricing. Clear Channel, the nation's No. 1 radio operator, bet last year that if it shortened advertising spots, its audience and ad rates would improve. The policy led radio revenue to fall 7% in last year's first quarter, but this year's first quarter showed a 5% increase.

Clear Channel Communications Inc. said it planned to sell programming to other broadcasters for use on the air, in webcasts and other new forms of distribution. The company will sell audio programs, videos, still images and text for websites and new digital channels.

The Federal Communications Commission on Wednesday launched formal investigations into pay-for-play practices at four of the nation's largest radio corporations, the biggest federal inquiry into radio bribery since the congressional payola hearings of 1960. Two FCC officials with direct knowledge of the matter confirmed that the agency had requested documents from Clear Channel Communications Inc., CBS Radio Inc., Entercom Communications Corp. and Citadel Broadcasting Corp.

In an annual ritual that companies have come to dread, the California Public Employees Retirement System on Wednesday named six firms that it says must improve financially and adopt more enlightened rules for corporate governance. The companies on the 2006 edition of CalPERS' "Focus List" are Brocade Communications Systems Inc., Cardinal Health Inc., Clear Channel Communications Inc., Mellon Financial Corp., OfficeMax Inc. and Sovereign Bancorp.

Four of the nation's largest radio station groups are in active talks with the Federal Communications Commission to settle investigations over alleged "pay for play" violations. But negotiations with Clear Channel Communications Inc., CBS Radio Inc., Entercom Communications Corp. and Citadel Broadcasting Corp. have bogged down over how large a fine the companies should pay and what constitutes improper on-air promotion, according to industry and agency sources familiar with the talks.

Clear Channel Radio is joining three other radio station companies to test a rival approach to Arbitron Inc.'s electronic measurement system as the industry moves away from traditional paper logs to assess audience size. The issue has gained new urgency after Arbitron on Thursday launched its own electronic system, dubbed Portable People Meter, and said it would stop using the paper diary method of tracking listeners in Houston beginning in July.