Lamar Advertising (LAMR) Acquires Colossal Media, Shares Up Lamar Advertising (LAMR) is expected to ride the growth curve with the acquisition of Colossal Media.
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This story originally appeared on Zacks
Lamar Advertising Company LAMR has acquired a leading operator of hand-painted walls and murals, Colossal Media from its co-founders Paul Lindahl and Adrian Moeller. The partnership is expected to offer a new dimension to the advertising world. The purchase price for the transaction is not disclosed.
Reflecting positive sentiments, shares of Lamar have risen marginally upward to 115.67, since the announcement of the news.
Per the terms of the transaction, Colossal Media will operate under the Colossal brand as part of Lamar. Kelly Peppers, the CEO of Colossal, will continue to lead the company.
The acquisition seems beneficial to Lamar as Colossal operates 81 large format, hand-painted wall displays in New York, Los Angeles, Chicago and six other US cities. Moreover, it is known to offer work for the best-known brands.
Both Lamar Advertising and Colossal Media are expected to ride the growth curve with the blend of hand-painted and digital advertising. In recent years, Lamar made efforts to upgrade its portfolio, increasing occupancy in its existing advertising displays. It holds a significant market share in the U.S. outdoor advertising business, which is encouraging.
Lamar's increased focus on bolstering its digital capabilities augurs well for long-term growth. The growing digital platform allows Lamar to tap into the expanding programmatic advertising channel.
Shares of LAMR have appreciated 9.3% in the past six months, outperforming the 4% rally recorded by the industry.
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Stocks to Consider
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Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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