To: Tim Luke who wrote (45469 ) 5/26/1999 8:38:00 AM From: kathyh Read Replies (1) | Respond to of 90042
good morning all... osi article... third time's the charm??chicagotribune.com CBS EXPLORES OUTDOOR SYSTEMS DEAL FOR 3RD TIME May 25, 1999 The third time around may be the charm for CBS Corp. chief Mel Karmazin in wheeling and dealing to bring Outdoor Systems Inc., one of the biggest out-of-home advertising firms, under his wing. Karmazin and Bill Apfelbaum, president and CEO of CBS' TDI billboard business, the top player in advertising on buses, once again are trying to wring out a deal with Phoenix-based Outdoor Systems, sources report. The latter within the last three years has gobbled up Gannett Outdoor and 3M's National Advertising Co., also an outdoor advertising firm. The rumors of such a deal have been flying around Manhattan, as well as on the West Coast, insiders saying auditors representing CBS recently have pored over the books at Outdoor Systems. The problem: Karmazin isn't willing to come up with the price, reportedly as much as $3.5 billion, asked by Outdoor Systems. CBS is trying to figure out a way to cut costs if the deal goes through. "The trouble is that Outdoor Systems has been run as a lean operation, and cutting costs may not be so easy," says an insider. "But Karmazin is more serious than ever about this deal." CBS picked up TDI when it bought out Infinity Broadcasting Corp. Bringing Outdoor Systems into the fold would give CBS even more clout with advertisers seeking a one-package deal, using a variety of media. CBS already has such a package, having formed only last November its CBS Plus Division, which embraces 160 radio and 14 TV stations (two more being added), cable and TV networks, and presence on the Internet, along with the TDI business. As of the end of 1998, Outdoor Systems had 112,500 billboards, posters and transit ad locations in North America and Mexico, most of them in the U.S. Representatives for CBS and Outdoor Systems said they don't routinely comment on rumors.