What happened

Not all activist investors are successful in pushing for changes at their companies. But judging by the investor reaction to an activist's latest move with Clear Channel Outdoor Holdings (CCO -0.64%), that shareholder might just carry the day. As of early Friday morning before the market open, according to data compiled by S&P Global Market Intelligence, Clear Channel's share price had shot 12% higher week to date.

So what

On Tuesday, that activist investor, Legion Partners Asset Management, sent Clear Channel's board of directors a letter urging the company to put itself up for sale. 

Bloomberg, which said it had reviewed the letter, quoted Legion managing directors Chris Kiper and Ted White as writing, "We believe both financial and strategic parties could be interested in acquiring the entire company, with potential regulatory hurdles solvable through divestitures and/or partnerships."

Legion has had more than enough time to develop a view on Clear Channel's future; it has been a shareholder of the outdoor advertising company since 2021. It currently holds an equity stake of slightly more than 5%.

Clear Channel, as is fairly common in such situations, struck a probably-not-but-maybe note in reaction to Legion's idea. In a press release published after market hours Tuesday, the company admitted that while it's looking at a number of "strategic opportunities" for its business, it is "confident in Clear Channel's strategic direction and will continue to act in the best interests of all shareholders to drive maximum value creation."

Now what

It's too soon to tell whether Clear Channel will be genuinely in play. The wide-ranging company has quite a few assets it can sell, either piece by piece or as a whole, should it choose to accept Legion's proposal. Investors should keep a sharp eye on how this situation develops.