Alaska-based webcast is latest grab for Clear Channel.

SAN ANTONIO (Reuters) - Following a week of negotiations, Clear Channel Communication announced the purchase of Whole Wheat Radio. This $30 million deal signals a new focus for the broadcasting giant.

"Webcasting is clearly the future of radio," claims Clear Channel CEO Lowry Mays. In what may be the first of hundreds of such acquisitions, Alaska-based Whole Wheat Radio is now a Clear Channel company.

"We've made great progress in the radio industry, and now it's time to move into webcasting," says Mays.

And Mays is wasting no time. Within a week, Whole Wheat Radio will switch to a new modern music format that will feature artists such as Madonna, Billy Joel, Eminem, and Ice-T. "The format change will attract a more desirable demographic, with significantly more disposable income, claims Mays. Although Whole Wheat Radio has been commercial-free since its inception, that will change, of course. But Mays claims that advertising will never exceed 20 minutes per hour. "We want to stay true to the spirit of webcasting."

"I'm just pleased as punch," says Jim Kloss, owner of Whole Wheat Radio. "I've been working on this deal in secret for about a year, and it's finally come together, after a hectic week of negotiations. I have the highest regard for Clear Channel. I admire their philosophy, and it's always been my goal to work for them."

Kloss, who is said to be a tough negotiator, may not have to work at all. Details of the $30 million deal were not disclosed. When asked about the deal, Kloss broke into a brief rap:

Rat a tat tat
Shake my hat
I could not have wanted
A better deal than that

In a recent interview, Kloss told CNN that he's looking forward to making the switch. "The music on Whole Wheat Radio pretty much sucks," admitted Kloss. "We've been stuck with playing royalty-free music from third-rate musicians who can't even swing a contract deal with one of the Big Five record companies. It's pathetic. There's so much good rap and hip-hop music out there, and I can't wait to introduce my listeners to it."

Kloss makes his home in Talkeetna, Alaska, and lives in a small cabin with his partner, Esther Golton. "Esther doesn't know about this deal yet," admitted Kloss. "I plan to surprise her with the news on Saturday. She thought I was away in a cabin on vacation. She will be ecstatic."

Kloss lives a simple, rural life, and he is determined to remain in Talkeetna. "This town has tremendous tourist potential," says Kloss. "I plan to make some significant investments." First up is a regional shopping mall and a five-star hotel. "The tourists won't come if they don't have a nice place to stay," he says, "and everybody likes to shop."

When pressed, Kloss admitted that his ultimate goal is to construct an Alaska Wilderness theme park in Talkeetna. "We need to share the beauty of this state, and what better way to do so than with a theme park?" Kloss envisions a large, family-oriented attraction that will expose tourists to the Alaskan wilderness, but "without the danger and inconveniences." The first step, he said, is to "clear cut a 150-acre tract of land. Then we re-create the wilderness experience using concrete trees, life-like plastic plants, and artificial snow. The kids will enjoy the miniature train and, they'll love interacting with the robotic moose and grizzlies." When asked if a meeting with Disney's Michael Eisner was the horizon, Kloss quickly changed the subject.

Kloss prefers to talk about his true love, the webcast. What changes are in store for Whole Wheat Radio?

Besides the music format change, Kloss also plans to limit the listeners to the U.S. "In the past, we've had listeners from all over the world," says Kloss. "Our advertising focus will be on U.S. products, so it makes no sense to waste bandwidth on foreigners."

"My job will actually be much easier now," says Kloss. "I won't have to bother creating playlists. Clear Channel takes care of all the details, and they know what music people want to hear." In anticipation of the buyout, Kloss said that he had already made a key change at Whole Wheat Radio: switching to a stereo webcast. "Mono just doesn't cut in the high-end market we're going after," Kloss explained.

Kloss also plans to buy a new wardrobe, and is considering a name change for the station. "I'm thinking of calling it Wonder Bread Radio," said Kloss.

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