Why is Google afraid to buy Clear Channel?

Google’s announcement of its radio ad sales brokerage agreement to resell less than 5% of number one radio station operator Clear Channel’s inventory came at a bad time, just days after Google declared its $3.1 billion all cash intended takeover of the Internet display business via DoubleClick.

How so? While Google once again showed it is serious about owning the online advertising market, because it can, it also showed it is not serious about owning the offline advertising market, because it can’t.

Why Google will NOT rule the world! I underscored yesterday. 

If Google were REALLY serious about owning the radio advertising market, and thought it had a shot, it would BUY Clear Channel, it would not be content to be a mere lowest on the totem pole reseller of not readily saleable radio inventory that radio stations may deem to dish out to the search engine. Google undoubtedly even had to buy the right to the not so Clear Channel honors. 

What is Google afraid of in the radio market? The founders of the Google radio technology play, dMarc Broadcasting, bailed on Google, apparently not confident in ever reaping any of the promised billion dollars or more in radio advetising profits earn-outs dangeled by Google.

CEO Schmidt repeatedly proclaims what he believes is the Google rightful destiny to control ALL of the world’s advertising. Why then, is he playing around with Clear Channel seconds?

Why doesn’t Google buy the right to sell ALL of Clear Channel’s inventory by buying Clear Channel?

Google’s all stock acquisition of YouTube was done to own the online video advertising market. Google’s all cash acquisition of DoubleClick is being done to own the online display advertising market.

SO, if Google really believes it can revolutionize the radio business, it should seek to own the radio advertising market by buying the number one radio operator, Clear Channel, which is conveniently in play.

At a $18 billion market cap, Clear Channel is doable for $150 market cap Google, with a well-crafted combination stock, cash, debt…deal.

Google better hurry though, Clear Channel Communications’ shareholders are slated to vote Thursday on a proposed acquisition by buyout firms Thomas H. Lee and Bain Capital.

Flush off of its DoubleClick bidding war victory over Microsoft, Google is in prime negotiating form.

ALSO: Google Radio: Can Clear Channel REALLY save it? and
Google: $3.1 billion cash for Web monopoly! and
Google DoubleClick merger: Who wins, who loses and
Google buyouts are BAD business and
How Google has jumped the shark, big time