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

My Media Week: Clare Hill

My Media Week: Clare Hill

Clare Hill, managing director of the Content Marketing Association, prepares for the body's International Summit and awards, and has a pair of killer heels to break in.

Share
Which party will use outdoor effectively to lead the 2015 election agenda?

Which party will use outdoor effectively to lead the 2015 election agenda?

Will fear or cheer carry the most impact on voters and the wider media next year? asks Naren Patel, chief executive of Primesight.

Share
BBC plots £18m media consolidation

BBC plots £18m media consolidation

The BBC has expanded plans to review its £5 million media account to include the planning and buying business for BBC Orchestras, BBC Worldwide, World Service and Global News.

Share

Get news by email