The Resilience and Future of Media Giants in the Digital Age: Strategic Revitalization and Shareholder Value in Legacy News Organizations

In an era where digital disruption has upended traditional industries, legacy media companies are proving that reinvention is not just possible—it's necessary. From Clear Channel Outdoor to Nexstar Media Group, these organizations are leveraging digital transformation to restore profitability, diversify revenue streams, and deliver shareholder value. For investors, the story of these media giants is one of resilience, innovation, and a strategic pivot toward the future.

Clear Channel Outdoor: Monetizing the Physical World with Digital Precision

Clear Channel Outdoor (CCO) has emerged as a leader in digital out-of-home (DOOH) advertising, transforming static billboards into dynamic, data-driven platforms. By 2024, the company's digital revenue had grown 7.6% year-over-year to $122.7 million, driven by partnerships like its new roadside billboard contract with the New York Metropolitan Transit Authority. CCO's RADAR platform, which uses location-based analytics to track consumer behavior, has attracted advertisers in high-growth sectors like pharmaceuticals and consumer packaged goods.

Financially, CCO's strategic shift is paying dividends. In 2024, the company reported a 2.5% increase in Adjusted EBITDA to $144.8 million, with full-year guidance projecting 4–7% revenue growth for 2025. Its stock price has outperformed the S&P 500 over the past three years, reflecting investor confidence in its digital roadmap. For CCO, the key to long-term success lies in its ability to scale its DOOH network while maintaining margins in a competitive advertising landscape.

Lionsgate: A Standalone Studio's Digital Renaissance

Lionsgate's 2023 spinoff of its studio business via a SPAC IPO marked a pivotal moment in its digital strategy. As a standalone entity, the company has unlocked new valuation potential, with its trailing 12-month library revenue hitting an all-time high of $956 million in 2025. Digital licensing deals, such as The Rookie to Disney+ and The Chosen to Amazon Prime, have become a cornerstone of its profitability.

The results speak for themselves: Lionsgate's 2024–2025 fourth-quarter revenue surged 22% to $1.1 billion, with Adjusted OIBDA jumping 49% to $138.3 million. Its Motion Picture segment alone generated a 65% increase in segment profit to $135.3 million. This financial strength has translated into a 21% dividend yield, significantly above the media sector average. For investors, Lionsgate's ability to monetize its vast library while producing mid-budget hits positions it as a compelling long-term play.

Nexstar Media Group: The Digital-First Broadcasting Powerhouse

Nexstar Media Group (NXST) exemplifies how legacy broadcasters can thrive in the digital age. By 2024, digital advertising accounted for 30% of its total ad sales, driven by a portfolio of 138 websites, 229 mobile apps, and 60 CTV apps. The company's national digital properties, including The Hill and NewsNation, have attracted 95 million unique visitors monthly, placing it among the top 10 U.S. digital news sites.

Nexstar's financial metrics underscore its digital dominance. In 2024, it reported a 37% EBITDA margin and $1.2 billion in Adjusted Free Cash Flow, with a net leverage ratio of 2.9x. Its stock has delivered a 21.18% YTD return in 2025, outpacing the S&P 500. Looking ahead, Nexstar's investment in ATSC 3.0 technology—enabling 4K broadcasts and repurposed spectrum for data transmission—opens new revenue streams. The Edgebeam Wireless joint venture, already securing paying customers, could further enhance shareholder value.

The Path Forward: Strategic Priorities for Shareholder Value

For legacy media companies, the path to sustained shareholder value hinges on three strategic priorities:
1. Digital Monetization: Expanding AVOD, FAST, and programmatic advertising models to capture a larger share of the $100 billion digital ad market.
2. Operational Efficiency: Leveraging data analytics to optimize costs and improve margins, as seen in CCO's RADAR platform and Nexstar's lean balance sheet.
3. Diversified Revenue Streams: Diversifying beyond traditional advertising through spectrum licensing, real estate, or content libraries, as Lionsgate and Nexstar have demonstrated.

Investment Takeaways

• Clear Channel Outdoor: A buy for investors seeking exposure to the DOOH boom, with a strong balance sheet and 4–7% revenue growth guidance.
• Lionsgate: A long-term growth story, driven by library monetization and a disciplined approach to content production.
• Nexstar Media Group: A dividend aristocrat with a 3.79% yield and a forward P/E of 9.12, making it an undervalued opportunity in the digital media sector.

In conclusion, the legacy media landscape is not a relic of the past but a dynamic sector poised for reinvention. By embracing digital transformation, these companies are not only surviving but thriving—offering investors a compelling mix of growth, profitability, and resilience. As the 2024 election cycle and AI-driven ad tech reshape the industry, the winners will be those who adapt—and act now.