Outdoor advertising giant Clear Channel is understood to be in talks with banner advertising company Mega Profile about a possible takeover.
Mega Profile, which was the pioneer of large-format banner advertising sites, has been under increased pressure to find a buyer after a series of financial setbacks. Insiders claim that if Clear Channel decides not to buy Mega Profile, the company’s future is in doubt.
At Christmas, a Mega Profile senior executive left the company without tendering his resignation. Although no legal action has been taken, insiders claim his disappearance and facts that came to light after he left, have put it under considerable financial pressure.
On Monday, Mega Profile chief executive Simon Evans, along with the company’s directors, told their 23 staff that they were unable to pay their salaries this month unless they could secure a takeover deal in the next few days.
At the start of last year, Clear Channel took over selling advertising on Fort Dunlop in the Midlands – the UK’s largest advertising site – from Mega Profile (MW January 14). Later in the year, Clear Channel poached another of Mega Profile’s most important sites, St George’s Square in Glasgow, and set up its own banner division within its sales team.
Both Mega Profile and Clear Channel refused to comment when contacted by Marketing Week.