CBS Corp to sell CBS Outdoor international

CBS Corporation (CBS Corp) has officially put its international outdoor arm up for sale, ending years of speculation that it would offload the business, which includes the UK operation.

CBS Outdoor: resolved differences over its London Underground contract
CBS Outdoor: resolved differences over its London Underground contract

In a statement last night, CBS Corp said it would pursue a "divestiture" of its outdoor business in Europe and Asia, and would convert its outdoor arm in the Americas into a "real estate investment trust" (REIT).

It is believed there is no specific timeline for the sale and it is understood that CBS Corp will involve trade and other buyers in the process.

There has been speculation that CBS Corp would sell its outdoor business for some time, and it was widely believed that the problems the UK business had with the London Underground (LU) contract were preventing a sale.

However, in early 2012, CBS Outdoor and LU announced they had come to a "comprehensive agreement" which resolved their differences over the contract, one of the biggest of its type in the world.

Leslie Moonves, president and chief executive officer, CBS Corp, said: "We believe the moves we are announcing today will unlock the tremendous value of these unique quality assets.

"We have studied the benefits of converting our Americas operations into a REIT, and we are increasingly enthusiastic that this transaction — as well as the sale of our business in Europe and Asia — will achieve significant value for our shareholders."

The rumour of a possible sale was fuelled by Moonves's comments at the Deutsche Bank Media and Telecom investor conference in Florida in March 2011, when he said outdoor was not a "core business" to CBS.

Jean-Charles Decaux, chairman and co-chief executive of JCDecaux, has expressed an interest in CBS Outdoor in the past, but mainly in its US assets. JCDecaux could run into competition difficulties if it tried to buy the Europe operation.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Netflix gears up for European launches

Netflix gears up for European launches

Netflix, the video streaming service, is set to launch across six European countries this week. Starting with France, services will roll out on successive days in Germany, Austria, Switzerland, Belgium and Luxembourg.

Share
Yahoo appoints Tom Toumazis as head of partnerships in EMEA

Yahoo appoints Tom Toumazis as head of partnerships in EMEA

Yahoo has appointed former Walt Disney and Endemol leader, Tom Toumazis, as head of partnerships EMEA, as part of its attempts to boost its commercial prowess in the region.

Share
Ads fail to represent parenting properly, claims new research

Ads fail to represent parenting properly, claims new research

Ads are presenting an unrealistic representation of modern day parenting, claims new research by Parentdish.

Share

Get news by email