War chest gets boost

We knew something was brewing, so is was little surprise when Clear Channel Communications Inc. announced it was purchasing Donrey Media Group’s outdoor advertising division.

Actually, it was Eller Media Co., a subsidiary of the San Antonio-based communications giant, that took on Donrey billboards.

The sale raised much-needed cash for Fort Smith-based Donrey, which is in the heat of a newspaper war against an alliance between Community Publishers Inc. (the Northwest Arkansas Times and the Benton County Daily Record) and Wehco Media Inc. (the Arkansas Democrat-Gazette).

Donrey president Sherman Frederick said the newspaper war wasn’t the “driving force” behind the outdoor sale, but that it will allow the company to focus on the its “core business” — newspapers.

“We’re not going to be distracted by issues related to outdoor. But there were some bigger market issues in the outdoor business that were the ultimate compelling reason,” he said. “That industry is getting bigger and bigger. You’re either big or you’re not a player anymore.”

For Clear Channel, the purchase adds to its advertising power. Before the purchase, the $1.75 billion company owned and operated about 750,000 advertising display faces in more than 50 domestic markets and 35 international markets. It also operated 5,900 display faces under license management agreements.

The Donrey deal adds more than 9,000 ad faces to Clear Channel’s arsenal.

Clear Channel owns eight radio stations in Fayetteville and Ft. Smith.