This acquisition will allow Bauer Media to expand its activities in Europe by entering the outdoor advertising sector for the first time. Bauer currently operates in the UK publishing and audio industries.
If approved by regulatory authorities, the acquisition is expected to be completed this year. The deal would strengthen competition between Bauer and its rival Global, which operates in the audio and display sectors. Global entered the display sector in 2018 with three acquisitions.
Currently, Clear Channel’s Northern Europe division is active in 12 markets (five of which Bauer does not yet operate): the United Kingdom, Belgium, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, the Netherlands, Norway, Poland and Sweden.
Its management team will be retained to lead display operations, along with the 1,400 people employed by the company during its transition under Bauer ownership.
Greater tax benefits
Clear Channel put its Europe-North business up for sale in November 2023. At the time, Justin Cochrane, CEO of Clear Channel UK and Europe, said it was “no secret” that Clear Channel wanted to become a corporate exclusively American.
The company has already sold its Swiss, Italian and French operations, but plans to sell the Spanish division fell through due to a regulatory review in October 2024. The company also sought to sell its Latin American arm.
In an interview with The Media Leader, Justin Cochrane said the desire to become a U.S.-only company stemmed from a desire to offer greater tax benefits by becoming a real estate investment trust (REIT).
He then added that his “mission” was to “find the right owner for the rest of the European business at the right time” and that the new owner would probably be “someone who is really interested in the media, who wants to invest in this sector and who supports our projects.”
Yvonne Bauer, chairwoman of Bauer’s board of directors, said the acquisition “represents a crucial step in advancing our group’s refocused strategy. By strengthening our core media and related businesses while investing in our digital transformation, this transaction expands our capabilities and solidifies our position as a major player in the highly competitive media sector. »
She continued: “By bringing together the offerings of our two companies, we will be able to reach 350 million consumers through 200 magazine brands, 150 audio brands and 110,000 billboard sites across Europe. This expands the scope of what we can offer advertisers, giving them the opportunity to amplify the impact and relevance of their campaigns in an increasingly connected and digital world.
“We look forward to welcoming the Clear Channel team to Bauer Media. Together, we will create a comprehensive and innovative media offering that meets the evolving needs of our advertisers and audiences across the region.”
Justin Cochrane added: “We look forward to joining Bauer Media and building on the strong foundation we have established in these European markets as part of Clear Channel. The consistent performance of our assets in Northern Europe since the start of the year highlights the growing demand in these markets and the dedication of our teams to execute for our customers and partners. »
