CBS Corporation (CBS) continues to make progress in its three step plan for outdoor advertising company CBS Outdoor Americas (CBSO). The first milestone was achieved last month with CBSO’s successful IPO and now CBS has received a favorable private letter ruling from the IRS regarding the conversion of CBSO into a REIT. According to CBS CEO and President Les Moonves, ‘CBS Outdoor’s conversion into a REIT will unlock its true value’ and that the company is “…very pleased with the way CBS Outdoor has launched as a public company, and with this favorable IRS ruling, we look forward to great success in the future.”
The next step is for CBS to spin off its remaining 81% stake in CBSO to shareholders later this year and that will be followed by CBS Outdoor electing (and qualifying) to be taxed as a REIT. While CBS’ three point plan isn’t nearly as entertaining as Justin Timberlake’s SNL three step ‘gift giving’ guide, it’s high on the action for a spinoff. We will keep you updated as the company continues to make progress.
Disclosure: Author holds no position in any stock mentioned.