Forget Netflix and Disney+ -- This Media Stock Is the Better Buy
Investors are getting very excited about the current streaming wars. Pioneered by industry disruptor Netflix (NASDAQ: NFLX), on-demand, over-the-top streaming is set to enter a new stage. Disney (NYSE: DIS) just released Disney+, and next year AT&T (NYSE: T) will release HBO Max, while Comcast (NASDAQ: CMCSA) will release its own streaming service called Peacock. That's not to mention incoming tech giant Apple (NASDAQ: AAPL), which just released Apple TV+, and the ongoing competition from e-commerce giant Amazon (NASDAQ: AMZN), which groups its video service in with its one-day shipping Prime subscription.
But as excited as investors are about the big "streamers," they are just as pessimistic about certain "old media" companies, especially CBS (NYSE: CBS) and Viacom (NASDAQ: VIA) (NASDAQ: VIAB). These two companies, both controlled by the Redstone family, are set to merge in early December in a stock-for-stock deal.
As much as the streaming stocks have soared recently, CBS and Viacom have declined by just as much, having been sold off at value-stock levels even after the merger announcement. Not only are CBS and Viacom dirt cheap, but the merged company will be stronger and could perform much better than expectations under incoming CEO Bob Bakish. That's why the new ViacomCBS is the best buy in the media sector today.
Source Fool.com
