UAE Edition 
MENA+ Edition 
Egypt Edition 
Saudi Edition 
AI + Innovation (MENA) 
Logistics (MENA) 
Share
Read Full Issue 
Mubadala nears close on USD 6.2 bn advertising giant takeover: Mubadala Capital’s takeover of US-based outdoor advertising player Clear Channel Outdoor Holdings is nearing the finish line, having secured the go-ahead from the Committee on Foreign Investment in the US, according to a press release.
A recap: Mubadala snapped up 100% of the US-based outdoor advertising player for USD 6.2 bn at the start of the year, alongside US-based investment firm TWG Global. Under the initial agreement, Clear Channel had a 45-day period to solicit other buyers before locking in with Mubadala.
Clear Channel operates as an out-of-home advertising firm and has a weekly audience of 130 mn Americans, with products including billboards at roadside and airport locations. It currently covers over 65 locations. The firm closed out last year with USD 24.7 mn in net income, reversing a USD 175.9 mn loss for the same period last year, according to its financial statements. Despite the USD 103.7 mn in losses from continuing operations showing up on its income statement, the firm still posted revenue growth of 6.6% last year which helped to shrink operating losses by 16.2% y-o-y.
The financing mechanics: Financing is coming in the form of USD 3 bn in equity from Mubadala, as well as debt financing from a group led by JPMorgan Chase Bank and Apollo Funds. Apollo also contributed an undisclosed amount of equity financing.
Next up: The transaction is set to close around 14 October, after which Clear Channel’s shares will be delisted from the New York Stock Exchange. Shareholders will receive USD 2.43 per share, which is a 71% premium over its share price before the takeover was announced. Mubadala’s equity backing is set to support deleveraging, fund growth, and shore up financial flexibility.
Keen on the ads: Multiply Group is another Emirati name that’s been making tracks in the advertising space in recent years. The Abu Dhabi-based investment firm launched Multiply Media Group (MMG) last year to bring its out-of-home portfolio companies under one umbrella, inked a JV agreement with Saudi players on global advertising, and acquired 100% of BlackLite Media as well as London Lites.
