The upcoming spinoff of Clear Channel Entertainment, now operating as CCE Spinco, will be completed by the end of the year according to CCE Spinco president/CEO Michael Rapino. Rapino addressed the spinoff publicly for the first time at Roadwork ’05, the Billboard Touring Conference and Awards held Oct. 25-26 in New York.
“We will be our own free-standing company as of December, with a yet-to-be-determined new name,” Rapino said. “We will no longer be part of the Clear Channel corporation.”
Rapino said the new company would be “a collection of our music assets—promoters, festivals, our venues— [along with] our theatrical division, our motorsports division and our sports division.” The spinoff will “give us incredible new freedom to operate as a more nimble and dynamic young company.”
He called the job cuts of the past few weeks an attempt to give the new entity “a much more focused approach to the business than what we’ve done in the last few years,” Rapino said. “At the end of the day we’re a music company. We make 90% of our profit as a venue and music concert company. We’re just cleaning up a lot of the other divisions and shutting down non-core businesses so we can continue to be the best music/concert/venue company in the world.” The company has still not addressed specifics about the job cuts or office closings, which are believed to still be ongoing.
Rapino was on a “power player” panel at the Roadwork conference on Oct. 26 that packed the room. More than 500 people turned out for the conference, up about 25% from the debut gathering in 2004.