Posts by Michael Santoli

  • CBS Outdoor deal shows value of a very old 'mobile media' strategy

    Michael Santoli at Yahoo Finance3 days ago

    The keenest minds in New Media are honing their sharpest technical tools to capture local advertising dollars aimed at mobile consumers. Ironic, then, that some of the best plays on local and mobile ads can be found in the oldest, and flattest, of Old Media: billboards.

    The $690 million acquisition Monday by CBS Outdoor Americas Inc. (CBSO) of the largest privately held billboard business from Van Wagner Communications shows the abiding attractiveness of putting ad messages in front of bypassing eyeballs.

    CBS Outdoor became independent of media megalith CBS Corp. (CBS) through an initial public offering in March, and has nicely outperformed the market since then, with a 22% gain from its $28-per-share offer price. The shares added more than 3% Monday, closing at $34.52,  on the news of its Van Wagner purchase, which shows the market’s enthusiasm for consolidation in this mature but still appealing business. (The stock was down around 1% in early Tuesday trade.)

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