Legion Pushes Clear Channel Outdoor to Speed Up Breakup and Weigh Sale
Legion Partners Asset Management LLC is pushing Clear Channel Outdoor Holdings Inc. to speed up its breakup and consider a sale of the company. The activist investor has urged the outdoor advertising company to separate its U.S. and international businesses and consider a sale of the entire company.
Legion, which owns a 5.2% stake in Clear Channel Outdoor, said in a statement that it has been in talks with the company since February and has proposed a plan to unlock value for shareholders. The investor said it has met with Clear Channel Outdoor’s board and management and believes that the company’s current strategy is not in the best interest of shareholders.
Clear Channel Outdoor’s Current Strategy
Clear Channel Outdoor is the world’s largest outdoor advertising company, with operations in more than 40 countries. The company has been focused on expanding its digital billboard network and has been investing in new technologies to improve its services.
The company has also been investing in new markets, such as India and China, and has been expanding its presence in Europe. Clear Channel Outdoor has also been investing in new technologies, such as artificial intelligence and machine learning, to improve its services.
Legion’s Proposal
Legion has proposed that Clear Channel Outdoor separate its U.S. and international businesses and consider a sale of the entire company. The investor believes that a separation of the two businesses would unlock value for shareholders and create a more attractive investment opportunity.
Legion also believes that a sale of the entire company would provide shareholders with an attractive exit opportunity. The investor believes that a sale of the company would provide shareholders with a premium to the current share price and would create a more attractive investment opportunity.
Clear Channel Outdoor’s Response
Clear Channel Outdoor said in a statement that it is reviewing Legion’s proposal and is committed to acting in the best interest of its shareholders. The company said it is open to considering all options that would create value for its shareholders.
The company also said that it is committed to continuing to invest in its digital billboard network and new technologies to improve its services. Clear Channel Outdoor said it is also committed to expanding its presence in new markets and investing in new technologies to improve its services.
Shareholder Reaction
Shareholders have reacted positively to Legion’s proposal. The company’s shares have risen more than 10% since the proposal was announced.
Analysts have also reacted positively to the proposal. Analysts at Goldman Sachs Group Inc. said in a note that a separation of the U.S. and international businesses could unlock value for shareholders.
Outlook
It remains to be seen if Clear Channel Outdoor will accept Legion’s proposal. The company has said it is open to considering all options that would create value for its shareholders.
If the company does accept the proposal, it could lead to a separation of the U.S. and international businesses and a potential sale of the entire company. This could provide shareholders with an attractive exit opportunity and create a more attractive investment opportunity.