So how much is one of those big advertising billboards worth in the open market? Well, if you do the math – dividing the $690 million paid by CBS Outdoor for 1,100 Van Wagner billboards – it works out to a little over $672,000.*
Per AP, the deal is subject to regulatory approval and won’t take effect until 2015. The transaction involves prime impression-real-estate from coast to coast:
About 600 of the billboards are in Los Angeles and 294 are in New York. The rest are in Boston, Chicago, Dallas, Miami, Minneapolis, Philadelphia, San Francisco and Washington.
Based in New York, CBS Outdoor was spun off in March from CBS Corp. The company said it plans to hire on some Van Wagner personnel to help manage the new billboards.
*Correction (1:45 p.m.):
A rep for CBS Outdoor let us know that there are many more assets included in this deal besides the billboards. Specifically, another 8,500 displays in parking garages, on buses, involving street furniture and more. So our average billboard-cost calculation was a little high.