Why ViacomCBS Stock Crashed Again Today
ViacomCBS (NASDAQ: VIAC) shareholders cannot catch a break. Last week, shares of the broadcaster (and over-the-top streamer) tanked on news that two separate analysts had downgraded the stock. No sooner had Viacom shares recovered from that sell-off, though, than we got today's news: ViacomCBS is selling $3 billion in stock, diluting its shareholders -- and sending its shares down 7.2% as of 11:45 a.m. EDT.
As ViacomCBS announced last night, it will run concurrent offerings of $2 billion worth of new Class B common stock and $1 billion worth of Series A mandatory convertible preferred stock. Additionally, should underwriters exercise their full overallotment options, the company would issue another $300 million of the common stock and $150 million of the preferred.
Total potential stock issuance: $3.45 billion in new equity.
Source Fool.com