Yesterday Billboard Insider reported that the DOJ is investigating certain transactions involving insurance companies owned by Mark Walter, the owner of TWG Global.  TWG Global is a partner in the pending buyout of Clear Channel Outdoor.  The Wall St Journal ran an additional story today which included this:

The recent government scrutiny of deals by Walter”s insurance companies seemed to come by chance. It began with a whistleblower… In April 2025, Walter”s conglomerate, TWG global, announced that Mubadala, the Abu Dhabi fund, would help it raise $10 billion in fresh equity. Based on the whistleblower’s account authorities began to explore whether Guggenheim Investments, partly owned by TWG, might have used misleading contracts to inflate revenue and secure a better deal.

The Journal mentions that the government hasn’t charged Walter with any crimes and that Walter is in the process of selling or unwinding the undisclosed loans.  It also points out that Guggenheim shared the whistleblower report with its independent auditor which issued unqualified audit opinions.

SignValue’s Take: Not sure this impacts the close of the Clear Channel Outdoor transaction.  Mark Walter and TWG Global haven’t been charged.  $3 billion in cash equity has been committed to the Clear Channel Outdoor deal.  Mubadala Capital  has $385 billion in assets so can cover for TWG in the unlikely case that TWG backs out.  The market treated the Wall St Journal article as old news.  Clear Channel Outdoor stock has been recovering and finished the day up 2.4%.  It trades at $2.375 which is only 2.2% below the $2.43 per share cash buyout price.

If you have questions, contact one of SignValue’s experienced analysts for a free and confidential consultation at info@signvalue.com or call 480-657-8400.

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