CBS OUTDOOR NEWS

2-19-10.  Business Week announced that CBS profits fell 57% on its

radio and outdoor writedowns.     Net CBS income delcined  in 4th

Quarter to $58.8 million ( 9 cents a share) from $136.1 million.

"The outdoor billboard unit operating income 97% to $ 1 Million...."   stated the BW article.

Heads should roll!!

During the easy-credit or so called boom-years, big media as CBS and  Clear Chanell  grossly overpaid

for most of its outdoor advertising inventory. They are now  paying the real price which is a major

financial drag on the entire company.


Big media companies don't have the in-house management to successfully operate  billboards: they lack

common sense know-how, agility and local  and regional advertising savvy.   They purchased just the

physical inventory and didn't absorb experienced outdoor management types.  Fatal mistake.

TV  isn't the same as the outdoor business.


They are to fat at the top and don't have "street sense" required in the businesss which requires

advertising income streams from national, local and regional diverse business firms.   Big LAZY

Billboard wants it the easy way and that is all income from just the big national firms.

Do I smell a stockholders revolt ?  Or will CBS now try to sell it's outdoor unit  to that deep-pocket, well

run French  based outdoor firm?  Or is it late for a sale??

Property owners need to be on the alert.  

Bill McInerney

Outdoor Advertising Consultant
617 816 3933