OUTFRONT Media and Bell Media Announce Closing of the Sale of OUTFRONT Media's Canadian Business
OUTFRONT Media (NYSE: OUT) has finalized the sale of its Canadian business to Bell Media, a subsidiary of BCE (TSX, NYSE: BCE), for C$410 million in cash, subject to adjustments. This transaction enables OUTFRONT Media to reduce financial leverage and refocus on its U.S. operations. The deal is seen as highly beneficial for Bell Media, significantly enhancing its portfolio in the out-of-home advertising sector with additional digital and traditional assets. According to OUTFRONT Media's CEO Jeremy Male, the sale underscores the value of their out-of-home assets.
Bell Media President Sean Cohan highlighted that the acquisition will bolster Bell Media's leadership and deliver superior results for advertising partners.
- Completed sale of Canadian business for C$410 million in cash.
- Transaction enables OUTFRONT Media to reduce financial leverage.
- Company can now focus entirely on U.S. operations.
- Bell Media enhances its out-of-home advertising portfolio.
- Sale underscores the value of OUTFRONT Media's assets.
- Possible impact on revenue due to loss of Canadian business.
- Potential purchase price adjustments may reduce net proceeds.
OUTFRONT Media's sale of its Canadian business to Bell Media for
For Bell Media, the acquisition means an expanded inventory in both digital and out-of-home assets. This type of growth is significant because it can enhance revenue streams through a wider range of advertising solutions available to clients. The integration of OUTFRONT's assets could potentially lead to economies of scale, where the cost of operations per unit decreases as the volume of operations increases.
Investors should consider the short-term implications of the cash outflow for Bell Media and how it plans to integrate and leverage these new assets. Equally, for OUTFRONT Media, the immediate capital inflow may be used to strengthen their U.S. operations. In the long-term, these strategic moves could position both companies to better weather market fluctuations and improve profitability.
The out-of-home (OOH) advertising market is experiencing significant changes, with digital transformation being a key driver. For Bell Media, acquiring OUTFRONT's Canadian business means gaining a larger footprint in an industry expected to grow, driven by urbanization and technological advancements in digital billboards.
Understanding the dynamics of regional advertising markets is important here. Canada's urban centers, like Toronto and Vancouver, offer lucrative advertising opportunities and Bell Media's strengthened presence can attract more high-profile advertisers looking for broader reach and sophisticated digital options. This move can also be seen as a response to competitive pressures in the media landscape, where consolidation often leads to improved bargaining power with advertisers.
For OUTFRONT Media, the focus on a domestic U.S. market consolidates its operations, potentially leading to more focused and effective marketing strategies. This streamlined approach could enhance operational efficiencies and profitability in their core market. Investors should monitor how this strategic focus translates into revenue growth and market share in the highly competitive U.S. market.
Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media, said: "The sale of our Canadian business illustrates the inherent value of our out-of-home assets, and will enable us to proactively reduce our financial leverage and also focus entirely on operating what is now a fully domestic business here in
Sean Cohan, President of Bell Media, said: "This acquisition marks a significant milestone for Bell Media and solidifies our leadership position in the out-of-home space. Our now expanded national inventory of both digital and out-of-home assets will drive even better, industry-leading results for our advertising partners."
About OUTFRONT Media Inc.
OUTFRONT leverages the power of technology, location, and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in
About Bell Media
Bell Media is
Bell Media also offers best-in-class technology, marketing, and analytics support through Bell Marketing Platform, an omnichannel self-serve platform which includes Bell Analytics, Strategic Audience Management (SAM), and Bell DSP, in addition to advanced advertising solutions, including Linear Addressable TV, Addressable Audio, and ads on Crave. Bell Media is part of BCE Inc. (TSX, NYSE: BCE),
1 Based on total revenue and total combined customer connections.
Contacts:
OUTFRONT Media Inc. | Bell |
Investors | Investors |
Stephan Bisson | Thane Fotopoulos |
Investor Relations | Investor Relations |
(212) 297-6573 | (514) 870-4619 |
Media | Media |
Courtney Richards | Kaitlynn Jong |
Communications & Event Manager | Manager, Digital and Strategic Communications |
(646) 876-9404 | (647) 456-7487 |
OUTFRONT Media's Cautionary Statement Regarding Forward-Looking Statements
We have made statements in this document that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as "will," or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: declines in advertising and general economic conditions; the severity and duration of pandemics, and the impact on our business, financial condition and results of operations; competition; government regulation; our ability to operate our digital display platform; losses and costs resulting from recalls and product liability, warranty and intellectual property claims; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; diverse risks in our Canadian business, including risks related to the sale of our Canadian business; experiencing a cybersecurity incident; changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies; asset impairment charges for our long-lived assets and goodwill; environmental, health and safety laws and regulations; expectations relating to environmental, social and governance considerations; our substantial indebtedness; restrictions in the agreements governing our indebtedness; incurrence of additional debt; interest rate risk exposure from our variable-rate indebtedness; our ability to generate cash to service our indebtedness; cash available for distributions; hedging transactions; the ability of our board of directors to cause us to issue additional shares of stock without common stockholder approval; certain provisions of
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SOURCE OUTFRONT Media Inc.
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