CCO Stock Rockets on Report of Lamar Talks
Clear Channel Outdoor Holdings jumped over 15% in the closing minutes of trading Wednesday on the New York Stock Exchange as Reuters reported Lamar Advertising is in talks to buy some billboard assets for nearly $500M. CCO closed up at $5.89.
Lamar is nearing a deal to buy CCO’s billboard assets in five cities: Cleveland; Des Moines, Iowa; Memphis, Tenn.; Reno, Nev.; and Seattle, sources said, though talks aren’t final. The holdings are worth roughly $450M, sources told Reuters.
Baton Rouge, La.-based Lamar has a market capitalization of $5.82 billion, according to it website.
One source adds Clear Channel Outdoor also plans to sell a different set of billboard assets pegged to bring $350M-$400M to private buyers such as Total Outdoor and Reagan Outdoor.
Proceeds would help whittle away some of the $20.6B in debt held by CCO’s parent iHeartMedia, taken private in 2008 by buyout firms Bain Capital and Thomas H. Lee Partners for $19B.