Clear Channel Outdoor Holdings, Inc. has sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with a focus on improving liquidity and optimizing operations. CEO Scott Wells emphasized the strategic importance of this transaction, while continued operations in Brazil are under consideration. The sale will also affect financial reporting under U.S. GAAP standards.
Clear Channel Outdoor Holdings, Inc. has successfully concluded the sale of its operations in Mexico, Peru, and Chile to Global Media US LLC, operating as Global Vía Pública. The transaction involved a cash payment of $20 million at closing, leading to an Enterprise Value of $34 million, with potential additional earnings of $1.25 million.
The CEO, Scott Wells, highlighted the sale as a strategic move aimed at optimizing their portfolio and focusing on growth areas within the U.S. and airport segments while enhancing the company’s financial stability. Federico Diez, President of Global Vía Pública, expressed enthusiasm for the acquisition, emphasizing its alignment with their growth strategy in Latin America.
Additionally, Clear Channel is in the process of selling its remaining business operations in Brazil. From an accounting perspective, the sale has been classified as discontinued operations, affecting how these will be reported in financial statements following U.S. GAAP standards.
Moelis & Company LLC was engaged as the financial advisor for this transaction, assisting Clear Channel in navigating the sale of its Latin American assets. Clear Channel Outdoor Holdings is recognized for its innovation in the outdoor advertising sector, focusing on digital integration and data analytics to better serve its advertising clients.
Clear Channel Outdoor Holdings, Inc. is a key player in the out-of-home advertising industry, often recognized for its focus on technological innovation, particularly through digital advertising platforms. The decision to sell its businesses in Latin America reflects the company’s strategic priorities to streamline operations and allocate resources to more profitable segments, particularly within the U.S. and airport markets. The move is part of a broader initiative to enhance liquidity and financial health amid shifting market dynamics.
The sale of Clear Channel’s Latin American operations to Global Vía Pública represents a significant shift toward optimizing the company’s focus on core markets, particularly in the U.S. This reflects a deliberate strategy to strengthen financial standing and operational efficiency. The changes in financial reporting underscore the company’s commitment to transparency and adherence to accounting standards as it moves forward with its revised business model.
Original Source: www.prnewswire.com
