Entravision Communications announced late yesterday that it has decided to explore "strategic alternatives" for its outdoor advertising operations and has retained Citi and Moelis Advisors, a division of Mercanti Securities, to act as its financial advisors in the process. Outdoor is the smallest division at Entravision, which would be left with TV and radio stations after such a sale. Entravision’s outdoor advertising operations operate under the name Vista Media and consist of approximately 10,400 advertising faces concentrated primarily in New York and Los Angeles.
"Following a thorough review of our operations and business plans in consultation with our advisors, our Board has decided to explore strategic alternatives for our outdoor advertising operations in order to unlock the value of these assets to the benefit of our shareholders. We will also continue to build and invest in our TV and radio assets with the goal of further strengthening our position in the nation’s highest density Hispanic markets," said CEO Walter Ulloa.
RBR observation: Wall Street has been waiting for this for years, since Entravision showed no signs of becoming a major player in the billboard business. Outdoor is hot right now, so it appears that Entravision’s management and directors have decided that now is the time to cash out of billboards.