Promoters Weigh In On CCE Spin Off

(CelebrityAccess MediaWire) — Since Clear Channel Communications’ news that it will spin off Clear Channel Entertainment as a separate, publicly traded company by the end of the year, the financial and music communities have speculated about interested potential bidders for the property. Published reports have indicated bidding interest from HOB Entertainment, Jam Productions and Dave Lucas’ newly launched Live 360 concert promotion firm. Still, CCC CFO Randall Mays says the entertainment division is not for sale. Clear Channel Entertainment will be spun off in its entirity rather than piecemeal.

“It’s a sign of media times where no one is being rewarded with higher growth or stock prices from all these consoldiations," Jon Friedland of Porter Felleman told CelebrityAccess. "In fact it may be turning out to be counterproductive. Witness the Viacom split announcement as well as CCE. I think it will happen in CCE’s case as the Mays are sick of no stock movement and managing all these businesses."

That all said, promoters weighed in with their spin off reactions to CelebrityAccess.

"I'm certainly glad we didn't sell House of Blues Concerts,” HOB Concerts EVP Alex Hodges told CelebrityAccess. “This is some of the most interesting news in the concert world in a long while, and like everyone else, we're anxious to see what changes there'll be in the active world of shows and of selling tickets. The spin off is a big deal. But as HOB Entertainment has kept HOB Concerts in the family, we're simply focused on our business. We're very busy and seeing excellent sales at this time and place."

Jerry Mickelson of JAM Productions, whose JamSports division was recently awarded a $90 million settlement from their lawsuit against CCE, told CelebrityAccess, “I'm not sure about the industry impact because that depends on some variable factors which are unknown at this time. The more immediate question is which executives will take control of Clear Channel prior to the spin-off? Will they operate any differently than what we've seen over the past four years? Will Clear Channel Entertainment be sold to another entity, and if yes, to whom?"


" Back in the days before Robert Sillerman began the consolidation of the concert industry, there were many promoters who had profitable companies across the country. My hope is that we get back to the basics of what made our businesses successful and Clear Channel rids themselves of the 'kill, crush and destroy' culture that has existed in their empire.”

Carl Freed, president of Trevanna Entertainment, adds: “Every press release has said that the entertainment division has been dragging down earnings. To be a value for shareholders a company must make money. I think the only value proposition is to sell the assets back to the original owners at a fair market value."

CCE promoters advised CelebrityAccess that they could not comment on the spin off. In addition to concerts, Clear Channel Entertainment consists of motor sports, theatrical, properties, exhibitions and SFX Sports." –Jane Cohen and Bob Grossweiner

Related Post