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The company plans to sell CBS Studio Center for nearly $1.85 billion to raise funds and invest in strategic areas, including streaming services. This aligns with VIAC’s earlier announcement concerning its restructuring plans for Paramount Pictures’ movie and television production unit. It aims to ramp up content on its cable and streaming services. The company’s restructuring plans should boost its overall operations and strengthen its position in the streaming-first world.
VIAC shares have slumped 30.3% in price over the past six months and 20.3% over the past month to close yesterday’s trading session at $29.56. The stock is trading below its 50-day and 200-day moving averages. VIAC shares hit their 52-week low of $28.90 in yesterday’s trading session. The media giant reported a solid streaming revenue growth in its latest quarterly result. However, its net earnings declined. Furthermore, the Street expects VIAC to deliver negative earnings growth in the current quarter. The stock’s near-term prospects look uncertain, given the anticipated negative returns. And though the company’s restructuring plans should help improve its financials, it might take a while before significant improvements can be seen.
