Is It a Billboard or a REIT? CBS Says Both (CBS.A) (CBS)
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CBS Corporation (NYSE: CBS.A) (NYSE: CBS) today announced a pair of strategic initiatives regarding its CBS Outdoor operating segment, which includes a large collection of billboards and transit & street advertising. The segment contains two businesses, one in the Americas and the other in Europe and Asia.
For the Outdoor Americas division, the Company has begun the process of converting the business into a real estate investment trust (REIT). For its Outdoor operations in Europe and Asia, the Company will pursue a divestiture of the business, which will be presented as a discontinued operation as of December 31, 2012.
"We believe the moves we are announcing today will unlock the tremendous value of these unique quality assets," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. "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."
Investors in CBS like the news, sending the stock up 8 percent after-hours to $41.06.
For the Outdoor Americas division, the Company has begun the process of converting the business into a real estate investment trust (REIT). For its Outdoor operations in Europe and Asia, the Company will pursue a divestiture of the business, which will be presented as a discontinued operation as of December 31, 2012.
"We believe the moves we are announcing today will unlock the tremendous value of these unique quality assets," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. "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."
Investors in CBS like the news, sending the stock up 8 percent after-hours to $41.06.
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