CBS Turns U.S. Outdoor Operation Into A REIT And Plans To Sell Overseas Unit

Shares are up 8.3% in after-hours trading following the announcement. Investors have long wanted CBS Corp to do something with the billboard unit, which didn’t seem to fit at a company focused on entertainment and news. CEO Les Moonves says he’s “enthusiastic” that the decision to turn the U.S. operation into a Real Estate Investment Trust, and sell the businesses in Europe and Asia, “will achieve significant value for our shareholders.” A REIT doesn’t have to pay corporate taxes but must give investors at least 90% of its taxable income. Last month, Moonves told investors that while CBS Outdoor is “a very good business”, CBS has “explored different options.” He added, though that there was “a very likely potential of keeping it and operating it and doing very well with it.” Analysts expect CBS to report that the Outdoor operation generated about $1.9B in revenue in 2012, up less than 1% vs 2011. Here’s today’s release: (more…)

This article was printed from