Bloomberg
ViacomCBS sinks after announcement of $ 3 billion share offer
(Bloomberg) – ViacomCBS Inc. declined to 10% after announcing a $ 3 billion share sale, an attempt to capitalize on a recent stock and increase spending on its Paramount + streaming service. ViacomCBS on Monday said B ordinary shares and $ 1 billion of a preference share that could be converted into class B ordinary. The shares are the non-voting company. The newly issued stock will start trading on March 24, reports Bloomberg News. ViacomCBS, like other media giants, generally promotes Paramount + and Pluto TV, a free multi-channel online service. The company also renewed its broadcasting rights to the National Football League last week in a deal that will cost about $ 2 billion annually. The share sale follows a rally that has outperformed the S&P 500, with gains of up to almost 170% until Monday’s close. Investors bet that smaller media companies like ViacomCBS and Discovery Inc. can use new streaming platforms to pay subscribers like Netflix Inc. and Walt Disney Co. Shares of ViacomCBS fell 7.3% to $ 93.03 in New York on Tuesday after falling as low as $ 90.30, reflecting the dilution of existing investments. The Class A shares are controlled by National Amusements, the Redstone family’s holding company. Morgan Stanley and JPMorgan Chase & Co. manage the supply. ViacomCBS has offered options to buy up to $ 450 million in additional shares. (Updates to Tuesday’s dissertation from first paragraph.) Visit us at bloomberg.com for more articles like this. Sign up now to stay ahead of the most trusted business resource. © 2021 Bloomberg LP