CBS to spin off billboard business By Meg James January 16, 2013, 3:12 p.m. CBS Corp. is taking out a billboard to say it no longer wants to be in the billboard business. On Wednesday, the broadcasting giant announced that it was selling its European and Asian outdoor sign business, which includes a contract with the London Underground, and converting its U.S.-based billboard unit into a real estate investment trust or REIT. For several years, potential buyers have kicked the tires of CBS' sign business - which generates about $1.8 billion in annual revenue - but apparently did not offer a price acceptable to CBS. For the first nine months of 2012, the unit generated more than $82 million in operating income, according to CBS' financial filings. An advantage of converting the U.S. outdoor unit into a REIT is that it allows new investors to come in and potentially enjoy higher returns. REIT rules require that 90% of a trust's taxable income be distributed to shareholders, which could make the business more attractive to investors. "We believe the moves we are announcing today will unlock the tremendous value of these unique quality assets," said Leslie Moonves, CBS Corp. chief executive, in a statement. We have studied the benefits of converting our Americas operations into a REIT, and we are increasingly enthusiastic that this transaction - as well as the sale of our business in Europe and Asia - will achieve significant value for our shareholders. CBS said it would submit a request for a ruling from the Internal Revenue Service this quarter. If the IRS approves its request, then CBS could complete the REIT conversion in 2014. CBS posts 15.7% profit increase in third quarter CBS Chief Leslie Moonves extends his deal CBS Chief Leslie Moonves collected nearly $70 million last year