Yesterday, Clear Channel Outdoor announced a sale to Mubadala Capital/TWG for $6.2 billion. Here’s an analysis of the sale, sponsored and analyzed by SignValue.
A 12.8 times adjusted cashflow purchase multiple
The transaction gives Clear Channel Outdoor an enterprise value of $6.2 billion. That works out to 12.76 times Clear Channel Outdoor’s Adjusted EBIDTA (cashflow) from continuing operations of $486 for the 12 months ended September 30, 2025. We think it’s a more than fair price when you consider one-sixth of Clear Channel’s cashflow has been coming from an airport division with relatively short term municipal contracts. A 14 times cashflow multiple for the billboard assets and 6 times cashflow multiple for the airport assets gets you to approximately a 12.8 times blended cashflow multiple.
Whose funding?
Equity will be provided by Mubadala Capital and TWG. Apollo has agreed to provide preferred equity. Debt financing has been provided by the Apollo funds and JP Morgan.
Wade Davis is the new Clear Channel Outdoor Chairman
After the purchase Wade Davis becomes Clear Channel Outdoor’s Executive Chairman. Davis is an engineer and investment banker who learned the media business via stints as CFO Viacom and CEO of TelevisaUnivision. In 2019 Davis founded Forgelight, LLC a Miami based private equity fund which has invested in The Bank of London, TelevisaUnivision and VIX. Davis has no direct experience in the out of home advertising business.
Good for shareholders
Say what you like about activist funds but they were a huge help to Clear Channel Outdoor shareholders. Clear Channel Outdoor stock has more than doubled since activist shareholder Anson Holdings purchased a stake in 2023 and began agitating for a sale.
Probably good for creditors
We aren’t sure yet if the transaction is immediately deleveraging. Clear Channel Outdoor had $5 billion of debt at 9/30/25 with debt/cashflow of 10:1. The sale document refers to a $6.2 billion enterprise value and $3 billion of committed equity which implies that debt at closing could be reduced to approximately $3.2 billion with a debt/cashflow of 6.6 times. Even if the transaction doesn’t reduce debt at closing we think that the new shareholders will increase capital spending that that this will increase cashflow and reduce leverage.
Let the bidding begin
Clear Channel Outdoor has 45 days to solicit bids from anyone else. If no other bids are accepted the sale to Mubadala/TWG will close in the third quarter of 2026.
SignValue’s take: Good for shareholders, probably good for creditors, good for the industry. It helps no one when one of the three biggest companies in the US out of home industry has limited funds to invest in growth because of a crushing debt load. Looks like that may be about to change. We wish the incoming Clear Channel Chairman had experience working for a REIT or OOH company. Industry outsiders haven’t had a great track record running Clear Channel. Like we have been saying for a few years now, CCO needs to start building traditional billboards to grow meaningful equity. Maybe the new owners will get the memo.
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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