Blackstone eyes billboard operator New Tradition

Blackstone is nearing a deal to acquire a majority stake in New Tradition Media that would value the billboard operator at $500 million to $750 million, Bloomberg reports.

Why it matters: Out-of-home ad networks have reported strong post-pandemic market positions, providing attractive investments for private equity.

Details: The deal would have CEO Evan Richheimer and COO Bret Richheimer continue to run the company, per Bloomberg.

• New Tradition Media was founded in 2010 and has offices in New York and Los Angeles. It defines its "marquee asset" as 1 Times Square, per the company's website. The company's reach extends to other major U.S. cities, such as San Francisco, Washington, D.C., and Las Vegas.
• New Tradition Media and Blackstone did not respond to requests for comment.

The big picture: Private equity firms recently have been investing in OOH businesses. Solomon Partners' Mark Boidman said at a roundtable for reporters earlier this month that his firm is committed to the sector. "Out-of-home is the best bang for your buck" for advertisers, he said.

• Solomon Partners served as the financial adviser for Universal Branding Group in its recent deal selling Times Square billboards to Providence Equity Partners.
• Clear Channel Outdoor could be open to a private equity bid as activist hedge fund Legion Partners is pushing for it to explore a range of options, including the sale of the entire company.