money digest

Empty

IAC stake

IAC/InterActiveCorp, the Barry Diller-led Internet conglomerate, said Monday that it has paid an undisclosed sum for a minority stake in HealthCentral Network, which runs a group of health and wellness Web sites. IAC last year made an investment in Medem, which runs a collection of Web-based physician-patient communication services. Diller and Peter Horan, CEO of IAC's media and advertising segment, will serve on HealthCentral's board.



Sat radio mixed

Shares of Sirius Satellite Radio rose 6% on Monday to $3.07 after Wedbush Morgan Securities analyst William Kidd reiterated his "buy" rating and $3.50 target. Kidd estimates the likelihood of an approved merger with XM Satellite Radio at less than 50% but views Sirius shares as undervalued whether the merger happens or not. XM, on the other hand, is overvalued, Kidd said. He reiterated his "sell" recommendation on XM and $9 price target. XM closed Monday up fractionally to $11.15.



Clear 'junk'

Standard & Poor's Ratings Services said Monday that it is keeping its bond ratings on Clear Channel Communications — including a "B+" corporate credit rating — on CreditWatch with negative implications. That means a debt-rating downgrade is possible. A "B+" rating is noninvestment, or "junk," grade. Clear Channel, the nation's largest radio station owner, is being taken private by a group led by Thomas H. Lee Partners and Bain Capital Partners for $39.20 a share, or about $19.5 billion. The FCC approved the deal last week, under certain conditions. Standard & Poor's said that after the deal closes it expects to lower Clear Channel's long-term corporate credit rating from "B+" to "B."
comments powered by Disqus