Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Infinity Acquires Billboard Firm in $8Bln Deal




NEW YORK -- Infinity Broadcasting, a leading U.S. radio company that is majority-owned by CBS Corp., said it will acquire billboard company Outdoor Systems Inc. for about $6.5 billion in stock and assumption of $1.8 billion of Outdoor Systems' debt.


Infinity's parent, CBS, said Thursday that it will back the transaction with its stake in the radio company, representing 96 percent combined voting power of Infinity common stock.


Mel Karmazin, Infinity chairman and chief executive, said in a statement the deal "extends our reach and establishes Infinity as the undisputed leader in the outdoor advertising business. Our new, industry-leading outdoor advertising company, combined with the biggest and best radio company in the business, will make Infinity the premier local advertising platform, one that is second to none."


Terms of deal call for each Outdoor Systems' common share to be swapped for 1.25 shares of Infinity class A common stock. There are no floors or ceilings in determining the exchange ratio, the companies said, so the ratio will remain the same even if there are fluctuations in each companies' share price.


Based on Infinity's last New York Stock Exchange trade of $26 per share, the terms value each Outdoor Systems share at $32.50, above the stock's last NYSE trade of $28.81. At $26 per Infinity share, the buyer said it expects to issue about 250 million shares.