Memorial Saturday For Lowry Mays, Who Founded Radio Empire

Lowry Mays (1935-2022)

A private memorial service for family was scheduled for today for Lester Lowry Mays, who founded Clear Channel Communications Inc. and became a billionaire by using rapid-fire acquisitions to turn it into the largest U.S. radio broadcaster, now known as  iHeartMedia Inc.

Mays died this past Monday at the age of 87.

"Chief", as he was known to those close to him, was raised in Dallas, Texas where his father, Lester, was killed in a traffic accident when Lowry was only 10 years old. This event prompted the forming of a very close union with his sister, JoAnn, and an even closer relationship with his mother, Ginny, who taught him lessons of strength, initiative, and resourcefulness.

According to an obit posted by family, Lowry graduated from Highland Park High School where he was a member of the ROTC. At age 16 and charmed by the thought of becoming a larger-than-life Texas wildcatter, Lowry enrolled in the petroleum engineering program at Texas A&M University where he joined the Corps of Cadets. While in the Corps, he distinguished himself as commander of his squadron that went on to win awards for best drill unit and most outstanding company overall. Lowry credits the Corps for developing the discipline, confidence, wisdom, and leadership skills which characterized him for the rest of his life.

Upon graduating from Texas A&M in 1957, Lowry spent eight months working at Core Laboratories in Midland, Texas, before being called up for duty at Brooks Air Force Base in San Antonio where he served as a second lieutenant and the base's petroleum officer.

A youthful Lowry Mays

The following year, he was re-assigned to Taiwan on a military exchange program to build a 250 mile long jet fuel pipeline that connected ports across the entire island. At the young age of 24, Lowry supervised 10,000 laborers digging the pipeline by hand and reported to the chief of the Chinese Nationalist Air Force. A few months prior to arriving in Taiwan, Lowry met Peggy Pitman. They married on July 31, 1959, while Lowry was on a special 10 day leave, and moved to Taiwan 2 days later.

After completing his military service, Lowry enrolled at the Harvard Business School with hopes of pursuing a career in the oil industry. However, after graduation, his career took an unexpected twist when he began working for Russ and Company, a San Antonio investment banking firm.

Lowry always believed that successful people were not afraid to strike out into unfamiliar territory even when their ultimate destinations were unknown. With this innate comfort level with risk, Lowry started his own investment banking company in 1970. Two years later, several former clients approached Lowry to invest in a FM radio station (a form of radio broadcast that could not even be received in most automobiles at the time). His guaranty of a note to fund the purchase of this station ultimately lead to his unintentional ownership of what is now known as "KJ 97" in San Antonio and earned him the moniker "The Accidental Broadcaster" from Forbes Magazine. 

In 1975, he teamed with Red McCombs to purchase a second San Antonio station, WOAI, which was considered a "clear channel" because no other station nationwide could operate on its frequency. WOAI's 50,000-watt signal could be heard hundreds or even thousands of miles away on a clear night.

Lowry was considered a pioneer in the broadcasting industry. Anticipating the future direction of radio industry ownership, he spent over a decade working on the deregulation of radio ownership rules which occurred when Congress passed the Telecommunications Act of 1996. Building a solid foundation during that time and becoming a student of the broadcasting industry, Lowry capitalized on the opportunities deregulation offered. He started with one small radio station in San Antonio and developed it into Clear Channel Communications that would eventually own and operate over 1,200 radio stations, numerous television stations, the largest outdoor advertising company in the world and start what is now Live Nation Entertainment.

Rapid profit growth in the 1990s made Clear Channel a hot stock on the New York Stock Exchange. Mays said that provided an opportunity to reward executives with equity. “They were all happy because they were making all this money,” he said. “I guess that led to the success more than anything.”

In 2000, Clear Channel bought SFX Entertainment Inc., a giant concert promoter, for nearly $3 billion. The concert business was supposed to thrive on support from the radio stations and billboards, but those synergies didn’t match expectations, and concert profits proved disappointing. Five years later, Clear Channel spun off its live-entertainment business, renamed Live Nation.

At its peak, Clear Channel Communications managed 55,000 employees in 84 countries with over $9 billion in revenue and was the best performing stock on the New York Stock Exchange for a decade. Lowry had an amazing work ethic but also knew that life was precious and meant to be enjoyed. One of his most-enduring sayings was "if it ain't fun, don't do it."

Clear Channel’s results deteriorated in the early 2000s as attractive acquisitions became harder to find and ad spending slumped. Mr. Mays had health problems. His sons took on more responsibility for running the company.

In July 2008, Bain Capital LLC and Thomas H. Lee Partners LP acquired Clear Channel Communications Inc. for about $17.9 billion. The acquisition left the business, renamed iHeart, loaded with borrowings. A decade later, iHeart filed for a Chapter 11 bankruptcy to restructure its debt.

The Wall Street Journal reports Clear Channel’s critics said it was replacing local DJs and radio personalities with coast-to-coast conformity. A DJ riffing on local news and weather in Des Moines, Iowa, might actually be sitting in Los Angeles.

At a 2003 U.S. Senate committee hearing on consolidation of media ownership, Don Henley, a member of the Eagles rock band, said Clear Channel was so powerful it could pressure artists into promotional deals. Mr. Mays denied that the company coerced artists in any way and said it was offering more choices for listeners.

He didn’t see himself as a purveyor of news or Top 40 hits but rather as a supplier of advertising opportunities. “I’m in the business of selling automobiles and tamales,” Mr. Mays told Forbes magazine.

Through the Mays Family Foundation, Mr. Mays was a major donor to Texas A&M, which named its business school after him. The foundation also has made gifts to healthcare, educational and other causes.