Home Stock Market Shares of ViacomCBS slipped 23% after the company's share price was about...

Shares of ViacomCBS slipped 23% after the company’s share price was about $ 3 billion

Shares of ViacomCBS Inc. fell 23% on Wednesday, after the media and entertainment giant valued an equity offering worth about $ 3 billion to raise capital to invest in its new streaming service.

Paramount + debuted on March 4 and is currently competing with the big boys, including Netflix Inc.
Walt Disney Co.

Disney + and AT&T Inc.

New HBO Max.

ViacomCBS shares

fell and closed at a record $ 100.34 on Monday, marks the 12th record to close so far this month. The stock has doubled in the past three months, and the company took advantage to issue new securities.

Wednesday’s sell-off, according to FactSet data, was the biggest percentage drop in a day since the stock was listed on the stock exchange.

The Company values ​​$ 20 million of its Class B ordinary shares at $ 85 per share and values ​​10 million shares of a 5.75% mandatory convertible preference share at $ 100 a. share.

Underwriters are Morgan Stanley, JP Morgan, Citigroup, Goldman Sachs & Co. Lead LLC, Mizuho Securities and Siebert Williams Shank have the option to purchase up to 3 million additional shares of class B and up to an additional 1.5 million of the required convertible preference shares. share. The company is expected to raise $ 3.06 billion if both options are exercised.

See: Disney + topped 100 million paid subscribers

Related: Disney Earnings: Disney skyrocketed + to nearly 95 million subscribers, resulting in a surprise profit

The company is planning to register for a mandatory convertible preference share listing on the Nasdaq, under the code “VIACP”.

Paramount + has two levels of registration; one with ads for $ 4.99 a month and a premium version with some extra programs for $ 9.99.

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Paramount Studios has joined other major Hollywood studios in cutting down on the traditional 90-day screenings, the period in which movies are shown exclusively in theaters before they switch to services. live streaming. The company will be sending new releases, including “Mission: Impossible 7” and “A Quiet Place Part II,” to Paramount +, after 45 days in theaters, as the Associated Press reported.

ViacomCBS has also signed an agreement with Epix to add thousands of movies to the service. On the television front, the major series will be a revival of “Frasier” with Kelsey Grammer, series based on films like “The Italian Job”, “Flashdance” and “Fatal Attraction”; the revival of “Criminal Minds” and “Reno 911!”; a weekly program by “Daily Show” host Trevor Noah; and a bolstered Nickelodeon lineup, which includes spin-offs to “Avatar: The Last Airbender”, a revival of “Rugrats” and live-action adaptations of “Dora the Explorer” and “Fairly OddParents.”

Read now: Why will cinema survive the coronavirus pandemic?



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