UK (Parliament Politic Magazine) – Clear Channel Outdoor has confirmed the closure of its sale of the French business and has initiated the process to divest its Europe North operations. Furthermore, the US-based outdoor company announced its intention to conduct a strategic review of its Latin American operations, including Mexico, Brazil, Chile, and Peru.
About Clear Channel Outdoor Holdings
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is leading the charge in revolutionizing the out-of-home advertising sector. Our dynamic advertising platform is diversifying the advertiser base by embracing digital billboards and displays, along with incorporating data analytics and programmatic features to provide easily measurable campaigns.
By harnessing the expansive reach and adaptability of our diverse asset portfolio, we facilitate connections between advertisers and millions of consumers monthly, spanning over 330,000 print and digital displays across 19 countries, excluding those designated for sale.
During the Clear Channel UK Upfronts earlier today, Justin Cochrane, CEO of Clear Channel UK and Europe, stated, “You may or may not have noticed that an overnight press release announced the successful sale of our French business.
It has been no secret for some time that we are transitioning to a US-only business. The international segments have been on the market for a while, but various challenges have hindered the sale of the entire business.”
Clear Channel Makes A Strategic Decision
Cochrane revealed that approximately a year ago, Clear Channel made the strategic decision to divest certain segments of its business in order to streamline the sale of the remaining components.
To date, the Swiss, Italian, and French businesses have been successfully sold, while the sale of the Spanish business is currently subject to competition regulations.
Furthermore, Cochrane stated, “The other noteworthy aspect highlighted in the recent press release is that we have officially initiated the sales process for Europe North, encompassing 12 markets, including the UK.
We are now embarking on a formal process for this endeavor, representing an exciting opportunity for our management team as we aim to select an exceptional new owner for our business.”
In a previous interview conducted earlier this year with The Media Leader, Cochrane expressed Clear Channel Outdoor’s desire to transform into a US-only business, primarily to take advantage of substantial tax benefits achievable by transitioning into a Real Estate Investment Trust (REIT).
Company Has Begun Sale Process For Europe North Segment
During the interview, he articulated his “mission” as the pursuit of identifying the ideal owner for the remaining European business at the opportune moment, emphasizing that the prospective owner would probably be an entity deeply committed to the media industry, willing to make strategic investments, and aligned with Clear Channel Outdoor’s future plans.
Furthermore, the company has commenced the sale process for its Europe-North segment, encompassing operations in the United Kingdom, the Nordics, and various other countries in Northern and Central Europe.
Simultaneously, the company has embarked on a strategic evaluation of its Latin American operations, spanning Mexico, Brazil, Chile, and Peru. It’s noteworthy that the company has successfully divested its businesses in Switzerland, Italy, and France, with an agreement in place to sell its Spanish business.
The commencement of the process to divest our Europe-North segment and the strategic review of our Latin American businesses does not guarantee the occurrence of specific transactions or outcomes.
The company has not established a fixed timeline for the completion of these processes, reserves the right to halt them at any juncture, and does not plan to release further updates about these processes unless the Company’s Board of Directors authorizes a course of action warranting additional disclosure.
Europe-South Segment Transitioned to Discontinued Operations
In the third quarter of 2023, the company’s plan to divest the businesses within its Europe-South segment fulfilled the criteria for classification as discontinued operations. In line with Generally Accepted Accounting Principles (GAAP), starting with the release of the company’s third-quarter results, the assets and liabilities of discontinued operations will be separately presented in the company’s Consolidated Balance Sheets.
Moreover, the results of discontinued operations will be reported as a distinct component of consolidated net loss in the company’s Consolidated Statements of Loss for all the periods presented. This will result in modifications to the presentation of certain financial data in prior periods.