LegalCaseDocs.com
shopping cart  
  |     
Search
 

 
New Visitors


 VeriSign Secure Site

 Get Adobe Reader

US v AMERICAN RADIO SYSTEMS CORP and EZ COMMUNICATIONS INC Click to find out why . . .



Keywords & Phrases
CaseNo: UVARSCAECI295058, CourtName: US DEPARTMENT OF JUSTICE, Plaintiff: US, State: DC Washington D.C., UniqueCaseRef: LCD>UVARSCAECI295058, Advertisers, Radio, Stations, Sacramento, Ars, Prices, Market, Competition, Audience, Advertising Time, Merger, Acquisition, Transaction, Target, Sacramento Msa, Clayton Act, Listeners, Hhi, United States, Ability, Violation, Media, Firms, Metropolitan Area, Advertisers Seeking, Signals, Raise, Revenues, Purchase, Necessary Advertising , ContentID: 120245949

Case Documents
1 1997-02-27 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 112948
10 pages
PDF
Total Documents: 1 document , 10 pages
Price: $ 19.95


IVESLCD01 KGI0001
 
 

 Forgot your password?


1 . COMPLAINT

EXTRACTED KEY WORDS
RADIO
STATIONS
SACRAMENTO
ARS
PRICES
MARKET
COMPETITION
AUDIENCE
ADVERTISING TIME
MERGER
ACQUISITION
TRANSACTION
TARGET
SACRAMENTO MSA
CLAYTON ACT
LISTENERS
HHI
UNITED STATES
ABILITY
VIOLATION
MEDIA
FIRMS
METROPOLITAN AREA
ADVERTISERS SEEKING
SIGNALS
RAISE
REVENUES
PURCHASE
NECESSARY ADVERTISING
                                         UNITED STATES DISTRICT COURT
                                         FOR THE DISTRICT OF COLUMBIA



____________________________________
UNITED STATES OF AMERICA,                             :
1401 H Street, NW                                     :
Washington, DC 20530                                  :
(202) 307-0829                                        ::
                      Plaintiff,                      :      No. 1:97CV00405
                                                      :
                                   v.                 ::     COMPLAINT FOR INJUNCTIVE
AMERICAN RADIO SYSTEMS                                :      RELIEF AGAINST COMBINATION
   CORPORATION                                        :      IN VIOLATION OF SECTION 7 OF
116 Huntington Ave.                                   :      THE CLAYTON ACT
Boston, MA 10103                                      :
(617) 375-7500                                        :      Received: February 27, 1997 at 4:23 PM
                                                      :      United States District Court
                      and                             :      District of Columbia
                                                      :
EZ COMMUNICATIONS, INC.                               :
10800 Main Street                                     :
Fairfax, VA 22030-8003                                :
(703) 591-1000                                        ::
                      Defendants.                     :
____________________________________:

           The United States of America, acting under the direction of the Attorney General of the

United States, brings this action to prevent the proposed acquisition through merger of EZ

Communications, Inc. ("EZ") by American Radio Systems Corporation ("ARS").

                                               I.  Nature of the Action

           1.         ARS is a large nationwide operator of radio broadcast stations that owns

five radio stations across the United States, including four located in the Sacramento metropolitan

area.  ARS has entered into several transactions in which it will be buying and selling a number of



radio stations in the Sacramento metropolitan area.  As a result of those transactions, ARS would

own four radio stations authorized and operating as class B FM radio broadcast facilities

(hereinafter "Class B stations") in the Sacramento area.
SNIPPETS:
  • United States, brings this action to prevent the proposed acquisition through merger of EZ
  • Inc. by American Radio Systems Corporation.
  • radio stations in the Sacramento metropolitan area.
  • As a result of those transactions, ARS would
  • The merger, if consummated, would eliminate price and service competition
  • many advertisers having to pay higher prices and receiving fewer services.
  • ARS would own eight radio stations in the Sacramento metropolitan area,
  • radio advertisers seeking to target these demographic
  • substantial market power in the Sacramento radio market.
  • radio stations nor any new entry is likely to check effectively ARS's ability to exercise the
  • This action is filed pursuant to Section 15 of the Clayton Act, as amended, 15
  • prevent a violation of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18.
  • ARS's Sacramento revenues in 1995 were approximately $15 million.
  • Radio Advertising Time in Sacramento is the Relevant Market.
  • Sacramento MSA is aimed at reaching listening audiences in the Sacramento MSA,
  • stations outside of the Sacramento MSA do not provide effective access to this audience.
  • Many local and national advertisers purchase radio advertising time in Sacramento
  • Reasons for this include the fact that radio advertising time may be less expensive and, on a
  • or as a necessary advertising complement to other media.
  • At a minimum, stations could profitably raise
  • Sacramento's strongest radio signals into the hands of a single entity.
  • they do not have the potential to reach as many listeners as strong signals.
  • The transaction would have the following effects,
  • "HHI" means the Herfindahl-Hirschman Index, a commonly accepted measure of market
  • The HHI takes into account the relative size and distribution of the firms in a market and
  •    |