09.13.2007 04:05 PM
CBS to acquire retail digital advertising company SignStorey
Broadcasting giant CBS, already a player in outdoor advertising, is now expanding its position in digital advertising networks. The network has entered into a definitive agreement to acquire SignStorey, a distributor of retail video programming and advertising content. Currently, SignStorey operates digital video displays in more than 1400 grocery stores in major markets across the United States.
The purchase price is $71.5 million in cash. SignStorey will be renamed CBS Outernet upon closing of the deal, which is expected in the fourth quarter of 2007 pending regulatory review.
SignStorey’s satellite delivery system provides a venue for targeted advertising and other programming that can be customized by region and by each individual system. The company has long-term exclusive contracts with SuperValu (Acme, Albertsons, Jewel and Shaw's), Pathmark, ShopRite and Price Chopper. The company's top consumer packaged goods advertisers include Johnson & Johnson, Colgate, General Mills and Dannon.
SignStorey’s in-store traffic exceeds 72 million consumers every month. Revenues more than doubled year-over-year in 2006, and the company has additional contracts and pilot programs in grocery accounts representing thousands of stores across the country. As CBS Outernet, it plans to continue to expand its distribution network to other retail locations and shopping environments.
For more information, visit www.signstorey.com and www.cbscorporation.com.