Byline: Richard Morgan and Claire Poole
New York outdoor advertising firm Van Wagner Communications LLC said Thursday, Jan. 2, it has acquired the New York telephone kiosk advertising business from Viacom Outdoor Group Inc., a unit of Viacom Inc., for an undisclosed amount.
The deal, effective Dec. 31, 2002, brings Viacom into compliance with a consent decree it signed in 1999 pursuant to its acquisition of Outdoor Systems Inc. for $6.5 billion.
"The Justice Department felt we had too much representation in New York City," a Viacom spokesman said.
The deal adds 1,600 Manhattan locations and 700 others throughout the rest of New York to Van Wagner's 1,000 venues. Van Wagner CEO Richard Schaps said in a statement the additional outlets help Van Wagner achieve "critical mass" in a growing segment of an otherwise uncertain advertising market.
For Viacom, the deal was deemed sufficiently immaterial to warrant a regulatory filing. For Van Wagner, which is privately held and declined to disclose revenues, a spokesman said the transaction promised to increase the company's size by 30%.
While neither party used an investment bank, Van Wagner retained the New York office of Brown Raysman Millstein Felder & Steiner LLP for legal advice. Steve Pretsfelder led the legal team, which included Anne Pitter, Will Behr, David Monassebian and Sabari Bagchi.
Van Wagner, which rents signage in Europe, Asia and Latin America as well as select U.S. cities, has been gobbling up advertising assets despite the industry's uncertain economy. Among its recent investments was a $292,000 stake in Internet advertising services provider FindWhat.com in Fort Myers, Fla.
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