Clear Channel Outdoor Holdings, Inc. has sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million. The transaction is part of the Company’s strategy to optimize its portfolio and strengthen its liquidity position. The financial terms and future strategies were addressed by both the CEO of Clear Channel and the President of Global Vía Pública, indicating a focused growth trajectory in North America.
On February 6, 2025, Clear Channel Outdoor Holdings, Inc. announced the completion of its sale of Latin American businesses in Mexico, Peru, and Chile to Global Media US LLC, operating as Global Vía Pública. The deal, executed as a simultaneous sign and close transaction, netted the Company $20 million, based on a $34 million enterprise value, with the possibility of an additional earn-out of $1.25 million. The proceeds are aimed at enhancing the Company’s liquidity position.
Scott Wells, CEO of Clear Channel, stated, “The sale of our Mexico, Peru, and Chile businesses further demonstrates the progress we are making to optimize our portfolio”. He addressed the commitment of the team in these markets, emphasizing the strategic realignment towards strengthening American and Airport segments.
Global Vía Pública President Federico Diez expressed excitement about building on their existing operations in Latin America, indicating this acquisition positively impacts their advertising growth strategies. The divestment process for the remaining market in Brazil is currently underway, as Clear Channel continues to restructure.
For accounting purposes, the businesses’ classification as discontinued operations will be reflected in the Company’s financial statements starting with the fourth quarter of 2024, ensuring clarity in asset and liability presentation. Moelis & Company LLC served as the financial advisor during this sales process.
Clear Channel Outdoor Holdings, Inc. is a leader in the out-of-home advertising sector, innovating through digital billboard expansion and advanced data analytics to enhance advertisers’ reach. The ongoing commitment to growth is clear in their future strategies, focusing on optimizing profitability and liquidity.
Clear Channel Outdoor Holdings, Inc. operates in the out-of-home advertising industry, utilizing a broad digital platform to enhance advertising reach. The Company’s recent decision to divest its businesses in several Latin American countries aligns with its strategic objectives to concentrate on core segments in North America. The sale not only improves its liquidity but also enables better focusing of resources on expanding operations within profitable markets. This strategic adjustment comes amidst an ongoing review of the Company’s operations globally, particularly a continued focus on strengthening its overall balance sheet and ensuring sustained growth in its remaining segments.
The sale of Clear Channel’s Latin American businesses represents a significant strategic shift towards enhancing its operational focus and improving liquidity. This decision underscores the company’s commitment to aligning resources with its core strengths while continuing to invest in growth within the American and Airport segments. The ongoing restructuring efforts highlight Clear Channel’s adaptive strategies in a rapidly changing advertising landscape.
Original Source: www.prnewswire.com
