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From Radio News:
Clear Channel sets CCE Spin-off
Come December 21st Clear Channel Communications will be out of its unhappy venture into the concert business. The spin-off of Clear Channel Entertainment announced last spring (5/2/05 RBR #86) will be completed by distributing stock of CCE Spinco to existing Clear Channel shareholders. If you own Clear Channel stock, you'll get one share of Spinco for each eight shares of Clear Channel that you own. That won't be taxable. But for fractional shares of Spinco you'll receive cash (as yet undetermined), which will be taxable. Spinco is going to trade on the NYSE as "LYV" so look for the new name to be something like Live Entertainment.
RBR observation: Get your calculators ready. Come December 22nd we'll have a Wall Street valuation of what the Entertainment unit is worth - - and how much of Clear Channel's 4.4 billion investment has simply vanished into thin air.
There goes that Destiny USA ampitheatre.
Clear Channel sets CCE Spin-off
Come December 21st Clear Channel Communications will be out of its unhappy venture into the concert business. The spin-off of Clear Channel Entertainment announced last spring (5/2/05 RBR #86) will be completed by distributing stock of CCE Spinco to existing Clear Channel shareholders. If you own Clear Channel stock, you'll get one share of Spinco for each eight shares of Clear Channel that you own. That won't be taxable. But for fractional shares of Spinco you'll receive cash (as yet undetermined), which will be taxable. Spinco is going to trade on the NYSE as "LYV" so look for the new name to be something like Live Entertainment.
RBR observation: Get your calculators ready. Come December 22nd we'll have a Wall Street valuation of what the Entertainment unit is worth - - and how much of Clear Channel's 4.4 billion investment has simply vanished into thin air.
There goes that Destiny USA ampitheatre.