Clear Channel Communications Inc., the owner of KSSK and five other Hawai'i radio stations, agreed to a more than $26.7 billion takeover by Thomas H. Lee Partners LP and Bain Capital Partners LLC.

San Antonio, Texas-based Clear Channel, the nation's biggest radio broadcaster, put itself up for sale last month after its share prices lagged despite asset sales and share buybacks. Its holdings also include television stations and a billboard company.

KSSK is the state's most listened-to radio station with AM and FM stations. Clear Channel's other holdings here form one of the biggest radio groups in the state and include KHVH-AM, KIKI-FM, KHBZ-AM, KDDN-FM and KUCD-FM.

Lee and Bain agreed to pay $18.7 billion in cash and assume or repay another $8 billion of debt.

Clear Channel lost more than 60 percent of its market value since 2000, as radio advertising sales stagnated and listeners devoted more time to the Internet, satellite radio and iPods. The buyers are betting they can slice costs and stem the slide.

Under terms of the sales agreement announced yesterday, Clear Channel can seek other offers and negotiate a new agreement until Jan. 5. Lee and Bain are among several private equity firms looking to buy media companies whose share prices have been driven down in recent years, in part because of rising use of the Internet.

Bain's investments include stakes in Toys "R" Us and Burger King. Lee's transactions have included those for Snapple Beverage and Houghton Mifflin Co.

Clear Channel gained entry into the Hawai'i market in October 1999 when it bought AMFM Inc., then the biggest radio broadcaster, for $15.9 billion. At the time, AMFM owned KSSK AM and FM and five other radio stations here.

Bloomberg News Service contributed to this report.