VIAB

Viacom Inc

TMT, Event Driven/Special Sit


Presented:07/25/2018
Price:$27.88
Cap:$11.22B
Current Price:$24.22
Cap:$9.77B

Presented

Date07/25/2018
Price$27.88
Market Cap$11.22B
Ent Value$22.52B
P/E Ratio5.2x
Book Value$16.84
Div Yield2.87%
Shares O/S402.41M
Ave Daily Vol3,098,598
Short IntN/A

Current

Price$24.22
Market Cap$9.77B
Viacom, Inc. is a global entertainment content company, which connects with audiences through compelling television programs, motion pictures, short-form video, applications, games, brands for consumer products, social media and other entertainment content. The company operates business through the following business segments: Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers. It creates, acquires and distributes programming and other content to its audiences across multiple platforms. The Media Networks segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Insurge Pictures, MTV Films, Nickelodeon Movies and Paramount Television brands. Viacom was founded by Sumner M. Redstone on December 31, 2005 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: AT&T Inc (T), CBS Corp (CBS), Viacom Inc (VIA, VIAB)

Highlights

The presenter is short shares of Viacom (VIAB), seeing an attractive opportunity following a general run-up of media stocks from recent lows, which has reduced short interest. He thinks the recent media M&A backdrop has distracted investors from the risks facing VIAB, specifically as it relates to the upcoming DirecTV affiliate negotiations. There will also be continued declines in advertising and other organic shrinkage. The presenter sees an attractive risk/reward set-up, with a 10% - 15% rise in VIAB shares should it be involved in favorable strategic activity, and 50% - 60% downside following a challenged DirecTV negotiation.

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Idea Discussion

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