CBS Corporation Announces Two Strategic Initiatives For Its Outdoor Segment
The Company Begins the Conversion of Its Outdoor Americas Business Into a Real Estate Investment Trust (REIT)
CBS Will Also Pursue a Divestiture of Its Outdoor Business in Europe and Asia
NEW YORK, Jan. 16, 2013 /PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS) today announced a pair of strategic initiatives regarding its CBS Outdoor operating segment, which is comprised of 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."
As part of CBS's plan to convert its Outdoor Americas division into a REIT, the Company will submit a request for a private letter ruling from the Internal Revenue Service during the first quarter of 2013. If the ruling is granted, the Company could complete the REIT conversion in the taxable year beginning in 2014. All of these actions are subject to customary approvals.
About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The Company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media. CBS owns the most-watched television network in the U.S. and one of the world's largest libraries of entertainment content, making its brand – "the Eye" – one of the most recognized in business. The Company's operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media. CBS's businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), Showtime Networks, CBS Sports Network, Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television Studios, CBS Global Distribution Group, CBS Interactive, CBS Consumer Products, CBS Home Entertainment, CBS Films and CBS EcoMedia. For more information, go to www.cbscorporation.com.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not based on historical facts, but rather reflect the Company's current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause the actual results, performance or achievements of the Company to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: the inability to obtain the requisite regulatory approvals; changes in legislation, tax rules or market conditions could adversely impact the ability to consummate or achieve the benefits of the transactions; the inability to divest the Company's Outdoor operations in Europe and Asia on terms that the Company finds acceptable; domestic and global economic, business, competitive and/or other regulatory factors affecting the Company's businesses generally; and other factors described in the Company's news releases and filings with the Securities and Exchange Commission including but not limited to the Company's most recent Form 10-K, Form 10-Qs and Form 8-Ks. The forward-looking statements included in this document are made only as of the date of this document, and under section 27A of the Securities Act and section 21E of the Exchange Act, we do not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
SOURCE CBS Corporation