News

CBS Outdoor buys Van Wagner billboard business, set to convert some to digital

July 22, 2014

CBS Outdoor Americas Inc. announced earlier this week that it has executed a definitive agreement to acquire certain outdoor advertising businesses from Van Wagner Communications LLC for $690 million in cash. CBSO will acquire approximately 1,100 large-format billboard displays in 11 top U.S. markets. Total 2013 revenues of the acquired assets were $206 million.

According to Reuters, CBSO CEO Jeremy Male said there would be "great upside" in converting some of the recently acquired billboard inventory to digital billboard technology. About 1.5 percent of CBS' billboards are digital, about the same percentage as Van Wagner's, and make up about 10 percent of CBS' billboard revenue, the news agency said in its article.

"We're very pleased to be announcing an exciting transaction regarding this high quality group of outdoor assets," Male said in CBS' announcement. "It's a unique opportunity that aligns perfectly with our top-market growth strategy and will enhance the scale, quality and depth of our portfolio, which we believe will be great for our advertising partners. Further, we expect the Van Wagner assets to contribute significantly to our REIT operations, driving increased shareholder value."

Van Wagner CEO Richard Schaps said in the CBS announcement that he was "delighted" to turn the billboard division over to CBSO, and that the company "will now focus on building our Sports and Entertainment group as well as our leading Blimp and Aerial division."