January 2013 saw the announcement that CBS Corporation was planning to dissolve its international CBS Outdoor arm, with European and Asian divisions being sold and the US section being transformed into a real estate investment trust.
Prior to this, the next global outdoor advertising company along the route, Clear Channel, had failed to express an interest in purchasing the $6billion CBS Outdoor assets due to CEO William Eccleshare declaring the price tag too ambitious.
Three months later, and CBS Outdoor are sticking with their American REIT, but are eager to make a quick sale of their overseas branches, engaging in a swift bidding process which sees them collectively valued somewhere between $200 and $300million.
![JCDecaux - Peroni]( "Out of Home International")
As a result of CBS Outdoor's reluctance to sell the mass as separate parts, outdoor rivals JCDecaux and Clear Channel Outdoor have hardly given the auction a second glance. While both companies expressed a feasible interest in purchasing separate parts of CBS Outdoor, neither is enthralled by the idea of acquiring the entire load. Perhaps a stroke of fortune for media buyers, a successful merging of either outdoor leader with the CBS Outdoor divestment would have sparked worries surrounding competitive advertising costs.
Both JCDecaux and Clear Channel Outdoor have had conversations and assessed the situation, however, their interest is only half-hearted. This leaves five private equity groups to compete for the winnings, including US media-oriented investment firm Providence Equity Partners, European communications-focused group GMT Communications Partners - who already hold UK's Primesight and Spain's Redext within their portfolio - and LA-based Platinum Equity.
![CBS Outdoor - London Underground]( "Out of Home International")
The deal is expected to be completed by this summer, with the Financial Times reporting that a key attraction in the purchase of CBS Outdoor lies in their pioneering work across the digital outdoor advertising sector - such as the company's strong affiliation with the London transport network. Global director of insight and marketing at outdoor media buyer Kinetic Worldwide, Nick Mawditt, said: “Their digital proposition internationally is as strong as anyone’s. They are pioneers and leaders in that field. It’s just that they don’t have the scale of some of their competitors”.
Prior to this, the next global outdoor advertising company along the route, Clear Channel, had failed to express an interest in purchasing the $6billion CBS Outdoor assets due to CEO William Eccleshare declaring the price tag too ambitious.
Three months later, and CBS Outdoor are sticking with their American REIT, but are eager to make a quick sale of their overseas branches, engaging in a swift bidding process which sees them collectively valued somewhere between $200 and $300million.
As a result of CBS Outdoor's reluctance to sell the mass as separate parts, outdoor rivals JCDecaux and Clear Channel Outdoor have hardly given the auction a second glance. While both companies expressed a feasible interest in purchasing separate parts of CBS Outdoor, neither is enthralled by the idea of acquiring the entire load. Perhaps a stroke of fortune for media buyers, a successful merging of either outdoor leader with the CBS Outdoor divestment would have sparked worries surrounding competitive advertising costs.
Both JCDecaux and Clear Channel Outdoor have had conversations and assessed the situation, however, their interest is only half-hearted. This leaves five private equity groups to compete for the winnings, including US media-oriented investment firm Providence Equity Partners, European communications-focused group GMT Communications Partners - who already hold UK's Primesight and Spain's Redext within their portfolio - and LA-based Platinum Equity.
The deal is expected to be completed by this summer, with the Financial Times reporting that a key attraction in the purchase of CBS Outdoor lies in their pioneering work across the digital outdoor advertising sector - such as the company's strong affiliation with the London transport network. Global director of insight and marketing at outdoor media buyer Kinetic Worldwide, Nick Mawditt, said: “Their digital proposition internationally is as strong as anyone’s. They are pioneers and leaders in that field. It’s just that they don’t have the scale of some of their competitors”.