Clear Channel Outdoor Holdings, Inc. has sold its operations in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with potential additional earnings. This strategic move aims to improve liquidity and refocus on growth segments in the U.S. The Company will reclassify these transactions as discontinued operations in its financial reports. Moelis & Company acted as the financial advisor during this process.
On February 6, 2025, Clear Channel Outdoor Holdings, Inc. confirmed the completion of its sale of operations in Mexico, Peru, and Chile to Global Media US LLC, operating as Global Vía Pública. The transaction, executed as a simultaneous sign and close deal, netted the Company $20 million in cash, based on an enterprise value of $34 million, with an additional potential $1.25 million earn-out.
The purpose of this transaction is to enhance Clear Channel’s liquidity and to refocus on the growth of its American and Airports segments. Scott Wells, CEO of the Company, expressed gratitude toward colleagues in the respective markets for their efforts, noting that this sale underscores the Company’s commitment to optimizing its business portfolio.
In a statement, Federico Diez, President of Global Vía Pública, remarked on the alignment of the transaction with their strategic objectives to fortify their Latin American operations. Plans are underway to capitalize on this acquisition by utilizing the firm’s media platform for innovative outdoor advertising solutions.
The accounting treatment for this sale indicates that it qualifies as discontinued operations, as per U.S. Generally Accepted Accounting Principles. This will necessitate a separate presentation of related assets and liabilities in the Company’s financial statements, effective from the release of its fourth quarter of 2024 results.
Moelis & Company LLC served as the financial advisor during the sale process of the Latin American businesses.
As a leader in the out-of-home advertising sector, Clear Channel Outdoor Holdings, Inc. is committed to leveraging its broad portfolio and integrating innovative technology to enhance advertiser engagement. The Company’s approach integrates digital billboards and analytics to deliver impactful advertising campaigns.
Potential risks associated with the forward-looking statements made in the news release have been acknowledged by the Company. Stakeholders are advised to reference the Company’s SEC filings, particularly the annual report for the year ended December 31, 2023, for further information on these risks.
Clear Channel Outdoor Holdings recently sold its Latin American businesses as part of a strategic effort to streamline operations and improve financial stability. This move enables the Company to focus on growth areas, particularly in the United States. As the advertising landscape evolves, companies are increasingly prioritizing operational efficiency and profitability, making such divestitures common in the industry. The financial implications of this transaction are significant, with potential positive outcomes for liquidity and investment in core segments.
In summary, Clear Channel Outdoor’s sale of its operations in Mexico, Peru, and Chile to Global Media US LLC marks a strategic reorientation aimed at enhancing liquidity and concentration on American markets. By completing this transaction for $20 million, the Company not only solidifies its financial footing but also aligns with the strategic goals set for future growth. The sale reflects broader trends within the advertising industry to optimize resources and maximize return on investment.
Original Source: www.prnewswire.com
