Clear Channel Outdoor has sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with additional earn-outs possible. The sale is part of its strategy to optimize operations and focus on U.S. growth. This will improve the company’s overall liquidity and streamline its portfolio, signaling a shift towards core markets and innovations in advertising.
Clear Channel Outdoor Holdings, Inc. has sold its operations in Mexico, Peru, and Chile to Global Media US LLC, trading as Global Vía Pública, through a transaction that combined signing and closing. The company received $20 million and may earn an additional $1.25 million based on performance. The funds will be used to enhance the company’s liquidity.
CEO Scott Wells stated that the decision exemplifies their commitment to refining their operations while focusing on growing segments in America and airports. He praised the efforts of the teams in the sold markets. Federico Diez, President of Global Vía Pública, emphasized the deal’s alignment with their strategic objectives in Latin America, which will bolster their capacity for outdoor advertising campaigns.
The sale has been classified as discontinued operations in accordance with U.S. GAAP, with related assets and liabilities separately reported in the company’s financial statements from the fourth quarter of 2024 onwards. The company engaged Moelis & Company as financial advisor during the sale process.
Clear Channel Outdoor, a major player in out-of-home advertising, is focused on innovation and expanding its digital advertising capabilities to attract a wider range of clients. They utilize data analytics for effective campaign management, connecting brands to consumers effectively.
In conclusion, this transaction marks a strategic shift for Clear Channel, allowing it to consolidate its resources and focus on core markets while improving financial agility. The deal underscores both companies’ commitment to growth in the outdoor advertising sector.
Clear Channel Outdoor Holdings operates in the out-of-home advertising space and is publicly traded as NYSE: CCO. The company has been optimizing its portfolio and streamlining operations to focus on core markets, particularly in the United States and airports. The sale of its Latin American operations is part of a broader strategy to enhance financial stability and operational efficiency through targeted divestitures.
The sale of Clear Channel’s Latin American businesses to Global Media US marks a significant step in the company’s strategy to refocus on its American and airport segments. By leveraging the proceeds from the sale, Clear Channel aims to boost its liquidity and strengthen its market position. This strategic move reflects their ongoing commitment to innovation in the advertising industry while enhancing operational efficiency.
Original Source: www.prnewswire.com
