Clear Channel Sells Non-Core Assets to Lamar for Core Focus
Clear Channel Outdoor Holdings Inc. CCO, a subsidiary of iHeartMedia Inc., recently sold its non-core local assets in Columbus, including analog and digital billboards, bulletins and posters to U.S.-based outdoor advertising company, Lamar Advertising Co. LAMR, for an undisclosed amount.
Earlier on Jan 7, 2016, the company sold similar such assets in five of its non-strategic outdoor markets for $458.5 million to Lamar. The deal included more than 5,500 bulletin and poster faces, including 132 digital displays.
Even last month, the company sold assets in nine of its non-strategic outdoor markets for $602 million. In addition to these sales, the company sold a few of its assets in Florida. The markets in which Clear Channel divested its non-core assets include Cleveland and Columbus; Des Moines, IA; Fort Smith, AR; Memphis, TN; Portland, OR; Reno, NV; Seattle and Wichita, KS.
Clear Channel is currently focused on the operations in its core markets. On Feb 29, 2016, Clear Channel launched a new suite of research, data and analytics tool ‘RADAR’, which enables advertisers to better reach their target audience. Clear Channel has collaborated with mobile and data companies to track consumer behavior through RADAR after observing and passing billboards.
These transactions will assist Clear Channel to focus more on operations and free up resources to continue to drive innovation in the out-of-home space. The company is considering the optimal use of the proceeds of the sales.
A market research report by PwC shows that total global out-of-home (OOH) advertising revenue stood at $36.32 billion in 2014 and is set to grow at a 4.6% CAGR to reach $45.37 billion in 2019. The growth in the global OOH advertising market is likely to have a positive impact on Clear Channel’s revenues, especially since it is currently streamlining its business to focus on this market.
Clear Channel is one of the world’s largest outdoor advertising companies, with more than 650,000 displays in over 35 countries across five continents, including 43 of the 50 largest markets in the U.S. The company offers numerous displays worldwide to meet the advertising needs of its customers. These include a growing digital platform that presently offers over 1,050 digital billboards across 29 U.S. markets. Its International segment operates in 22 countries across Asia, Australia and Europe in a wide variety of formats.
Clear Channel carries a Zacks Rank #3 (Hold). A couple of other stocks worth a look include YuMe, Inc. YUME and Marin Software Incorporated MRIN. Both YuMe and Marin Software sport a Zacks Rank #1(Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
LAMAR ADVER CO (LAMR): Free Stock Analysis Report
CLEAR CHANL OUT (CCO): Free Stock Analysis Report
MARIN SOFTWARE (MRIN): Free Stock Analysis Report
YUME INC (YUME): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
