CBS plans to turn its billboard-advertising business in the Americas into a real estate investment trust, alleviating its tax burden.
CBS also is seeking to divest the outdoor-ad business’ European and Asian operations, the company said. That division will be considered a discontinued operation as of Dec. 31, 2012.
To qualify as a REIT, a company has to invest at least 75 percent of its assets in real estate and obtain 75 percent of its gross income from rents or interest on mortgages from financing property.
The company’s shares gained as much as 9.3 percent to $41.46 in extended trading after the announcement yesterday.