Clear Channel Communications unveiled more plans August 10 for the spinoff of its live entertainment division, Clear Channel Entertainment, as part of a filing with the SEC.
The filing was made regarding CCE Spinco, a temporary name for CCE as the spinoff moves forward, with a new name to be selected prior to the spinoff. CCE Spinco will operate CCE’s global music, theater, sports representation and motor sports businesses.
According to the report, the spinoff of CCE and an IPO of 10% of common stock of Clear Channel’s outdoor advertising business were progressing and should be completed by end of the year.
CCC previously announced it would pay a special dividend of $3 per share following the close of the IPO and spinoff, a total of about $1.6 billion. In today’s filing, CCC now says that rather than paying the dividend, the company will use the $1.6 billion “in the form of either share repurchases, a special dividend, or a combination of both.”
In yesterday’s (Aug. 9) quarterly report filing, Clear Channel says live entertainment revenues were flat for the second quarter of 2005, due to a decline in concerts, ticket revenues and attendance and the resulting drop in concession revenues. The U2 Vertigo tour and a strong European concert market had helped offset those declines, according to the report.