Viacom Outdoor loses $1bn NYC bus contract to Spanish outsider

by Daniel Farey-Jones, Brand Republic 22-Sep-05, 11:00

LONDON – Cemusa, a Spanish outdoor company that is among the bidders for London's mammoth Tube contract, has flexed its muscles by seeing off four rivals to win a $1bn (£675m) New York City outdoor advertising contract.

In an extra twist, the incumbent on the NYC bus shelter contract is Viacom Outdoor, the current holder of the Tube contract.

Subject to final negotiations, the City of New York has decided to award Cemusa the 20-year contract to sell ad space on bus shelters and newspaper kiosks after a five-way pitch. It has reserved the right to talk to other bidders if negotiations with Cemusa prove unsatisfactory.

Viacom and Clear Channel were eliminated early, making it a three-way fight between Cemusa, Van Wagner and a JCDecaux joint venture with NBC Universal, NBCDecuax.

Cemusa is owned by Spanish construction conglomerate Fomento de Construcciones y Contratas, and has contracts in 110 cities in Europe and North America.

It is among 10 bidders for the estimated £1.3bn Tube contract currently being tendered by Transport for London.

The 10-year contract allows the successful group or groups to sell advertising space on almost 290 London Underground stations, the Docklands Light Railway and Victoria Coach station, comprising 40 six-sheet billboards, many illuminated.

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