NEW YORK Cemusa North America said it has submitted a winning $1 billion bid for a 20-year franchise to sell outdoor advertising for New York bus shelters, newsstands and 20 public toilets to be scattered throughout the city.
The award is contingent on the successful completion of contract negotiations with the New York City Department of Transportation for the franchise. Negotiations begin next week. The new deal would go into effect in January 2006, with Chicago-based Cemusa replacing the current franchisee, Viacom Outdoor.
Other contenders for the business included Clear Channel Outdoor, J.C. Deceaux and Van Wagner.
Under the agreement, Cemusa, whose parent company is based in Madrid, Spain, would be responsible for installing and maintaining approximately 3,300 new bus stop shelters, 330 newsstands and the toilets.
Toulla Constantinou, CEO of Cemusa North America, said the company's pricey bid would not result in higher rates for advertisers.
"Our objective is not to change the way the market works," Constantinou said. "We will provide value-added with beautifully designed new structures."
Cemusa has the rights to similar outdoor franchises in Boston, Miami and Dade County in Florida, San Antonio and 110 cities in Europe and South America.