Clear Channel Outdoor to shed some European assets
Illustration: Aïda Amer/Axios
Clear Channel Outdoor announced late Tuesday it has agreed to sell its businesses in Italy and Spain to subsidiaries of JCDecaux in two all-cash transactions worth about €75.1 million.
Why it matters: The deals come shortly after Legion Partners demanded the out-of-home media company make a move. But selling these European assets seems to be not enough to appease the activist hedge fund.
Details: The sale of its Italy business is expected to close imminently, whereas the Spain business is expected to close next year following regulatory approval, CCO said in the press release.
- CEO Scott Wells said this sale, along with the sale of its Swiss business, "generated approximately $175 million in total gross proceeds" and acknowledged that those three markets are "lower-margin" and "lower-priority" for the company.
- "The Board continues its review of strategic alternatives for our other European businesses, and we remain focused on executing our strategic priorities in our America and Airports segments," Wells said.
Flashback: Legion Partners said in its May 16 letter that it was "disappointed to learn" CCO's "strategic review" appeared to be focused on the sale of assets in Europe-South.
- The letter pushed CCO to do much more, detailing that it should accelerate its sale process in Europe-North, begin a sale process for Latin America and consider selling select U.S. assets or even the entire company.
What we're watching: Lamar Advertising CEO Sean Reilly was asked last week at J.P. Morgan's Global TMT conference if his company would be interested in CCO's U.S. assets.
- "We're monitoring it," he said. "What I can say is we will not be the solution if they're in search of one. However, they do have some very attractive assets that do look like Lamar land."
