Archegos had borrowed heavily from Credit Suisse and Nomura to invest in Viacom CBS and Discovery. However Viacom shares started to fall last week amid fears that its channels were losing out to rivals such as Netflix and Disney Plus. That meant Credit Suisse and Nomura asked Archegos for more funds to cover the loans they had granted.
Full Answer
Why is Viacom stock down?
Mar 29, 2021 · Viacom stock (VIAC) the hodge-podge of old media assets of CBS and Viacom which includes a TV network, a smattering of cable channels and the Paramount movie studio was always suspect as a YOLO ...
Why did Viacom stock fall?
Mar 23, 2021 · 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% ...
Who is ViacomCBS owned by?
Mar 26, 2021 · A big downgrade hit the stock today. What happened . Shares of media company ViacomCBS ( PARA 0.50%) fell as much as 40% on Friday after being downgraded by an analyst. At 2:40 p.m. EDT, shares ...
Why is ViacomCBS stock up?
Mar 29, 2021 · The Shadow World Behind The Viacom Crash. ... fund called Archegos run by a former superstar manager manager Bill Hwang managed to amass a gargantuan position in Viacom stock without any formal ...
Is VIAC a good stock to buy?
Investor Takeaway Meanwhile, VIAC sports a strong balance sheet with plenty of cash on hand, and pays a well-covered dividend. VIAC appears to be rather cheap at present for its quality, and I view it as being a Strong Buy while the market isn't paying attention.Jan 7, 2022
What is going on with VIAC stock?
Effective today, ViacomCBS will rebrand to Paramount Global. The corresponding ticker for VIAC stock will change to PARA for Class B common stock. For Class A common stock, the ticker will change to PARAA.Feb 16, 2022
Why did VIAC spike?
Among the biggest factors: the company launched its Paramount+ streaming service on March 4, 13 key CBS TV affiliates signed multi-year contract renewals in January, and retail investors began to target VIAC shares. The result was VIAC stock closing at $100.34 on March 22, for a 174% increase to that point in 2021.Aug 13, 2021
What happened to Viacom stock in March?
ViacomCBS announced the stock offering after markets closed March 23. The next day, with the company flooding the market with millions of new shares priced at $85, the stock began to fall. The offering raised $2.65 billion.Apr 2, 2021
Does Viacom have a new stock symbol?
The name change, which makes total sense, is effective today and the company starts trading tomorrow under new stock symbol PARA.Feb 16, 2022
Who owns Viacom?
National AmusementsViacom / Parent organizationNational Amusements, Inc. is an American privately owned theater company and mass media holding company based in Norwood, Massachusetts, and incorporated in Maryland. It is the controlling shareholder of Paramount Global. Wikipedia
Is Viacom overvalued?
At its current price of $41.7 per share and the market cap of $27.1 billion, ViacomCBS stock is estimated to be significantly overvalued.Jun 5, 2021
Who is buying Viacom?
CBSCBS announced to acquire Viacom as part of the re-merger deal for up to $15.4 billion.
Is Viacom being sold?
30, 2021 /PRNewswire/ -- ViacomCBS Inc. (NASDAQ: VIAC, VIACA) today announced it has entered into a definitive agreement to sell CBS Studio Center and its associated operating business to a partnership formed by Hackman Capital Partners, LLC and Square Mile Capital Management, LLC for approximately $1.85 billion .Nov 30, 2021
Why did Viacom stock drop in March 2021?
The stock price slumped 23% last Wednesday after ViacomCBS announced pricing of its $3 billion stock sale in part to fund investment in streaming content, a move that would dilute the equity of existing shareholders.Mar 29, 2021
How much debt does Viacom have?
The company now has a market value of about $24 billion, and net debt of about $13 billion.Nov 4, 2021
What is the stock symbol for Paramount Pictures?
Stock Quote (U.S.: NYSE) | MarketWatch....$ 10.54.CloseChgChg %$10.54-0.05-0.47%
Are investors overreacting to news of a stock offering?
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
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.
So what
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.
Now what
Now, the news isn't entirely bad.
A big downgrade hit the stock today
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
What happened
Shares of media company ViacomCBS ( NASDAQ:VIAC) fell as much as 40% on Friday after being downgraded by an analyst. At 2:40 p.m. EDT, shares were still down 33.1% and heading for a very poor end to the week.
So what
Wells Fargo analyst Steven Cahall was the one driving the drop today, lowering his rating on ViacomCBS stock to underweight and lowering the price target from $82 to $59 per share. That one-year price target is well below the $66.35 per share that the stock ended at yesterday.
Now what
Shares of ViacomCBS shot higher early in the year on the hope that streaming would remake the business. But shares may have gotten ahead of themselves, and Paramount+ has a lot to prove before it will be considered one of the streaming powerhouses.
Viacom - YOLO trade gone wrong
Many analysts were puzzled why an old media company albeit with some mildly interesting assets but nevertheless low growth prospects would suddenly attract such a fervent following.
Wallstreetbets Again?
The stock found some love on wallstreetbets website where some of the retail speculators poured into the company’s option chain quickly snatching millions of profits in a matter of weeks. Still VIAC was a large capitalization stock and its ascent lacked the type of coordinated gang based behavior we’ve seen in stock such as GME or AMC.
The Shadow World of Equity Swaps
It turns out the culprit behind the move was an off exchange transaction called an equity swap. An equity swap is a custom contract between two parties to exchange the difference in the value of a particular stock from the start of the contract until such time that the contract ends.
Could it destabilize the whole market?
Leverage is a two edged sword of course and as we already noted when it is applied to the retail order flow the spillovers are manageable. However, Mr. Hwang positions were so large and so concentrated that they managed to impact the whole equity market.
Related Articles
Week Ahead: Defensive Sector Outperformance Signals Caution; Dollar To... By Pinchas Cohen/Investing.com - Aug 22, 2021 8
What is total return swap?
Archegos relied on so-called “total return swaps,” which are brokered by Wall Street banks for a fee and allow investors to collect profits (or sustain losses) on a stock portfolio. Advertisement. A spokesman for Archegos declined to comment.
Who is Meg James?
Meg James is a corporate media reporter for the Los Angeles Times, covering the business of television and digital disruption in the entertainment industry. She has been a member of the Company Town team for more than a decade. She previously wrote for the Miami Herald and the Palm Beach Post.
Who is Shari Redstone's father?
Shari Redstone stepped in to assist her ailing father, the late media tycoon Sumner Redstone, after a tumultuous period and a high-profile legal battle waged with his former female companions. In the aftermath, the Redstone family ousted Viacom’s longtime chief and his allies on the board.
What Caused VIAC Stock to Surge in Early 2021?
After being caught up in the 2020 stock market crash, ViacomCBS shares were going for under $12 last March. One year later, they had topped $100. Part of that was the gradual recovery of the stock through 2020. VIAC shares were worth $37.26 to close 2020. However, they caught fire in 2021.
The Collapse
Can you blame ViacomCBS for leveraging that spectacular gain to issue more stock? On March 22, the company triggered the VIAC collapse with a $3 billion stock offering intended to help finance its streaming service. $3 billion will pay for a lot of original programming. Shares slid to $91.25 the next day.
Back to Business
The VIAC stock slide continued for another three weeks — albeit at a much less dramatic pace. Today, it trades in the $40 range, a position it hasn’t deviated from in a major way for months.
Bottom Line on VIAC Stock
ViacomCBS has left the drama of spring 2021 behind it. Investment analysts still aren’t fully convinced that now is the time to pull the trigger, but cracks are showing. Those polled by CNN Business still have it rated as a consensus “Hold,” but they are looking more positive than they did in May.
When did Viacom and CBS merge?
Redstone, chair of VicaomCBS Inc., applaud during the opening bell in celebration of the company's merger at the Nasdaq MarketSite in New York, U.S., on Thursday, December 5, 2019. Viacom Inc. and CBS Corp. completed their merger on Wednesday, ending three years of on-and-off talks and creating what they boast is an entertainment colossus without ...
Is Tesla joining the S&P 500?
Tesla Is Joining the S&P 500. Here’s What That Means For You. VIAC’s stock is down by over 52% since January 31 after the World Health Organization declared a global health emergency in light of the spread of coronavirus. However, during the same period, the S&P 500 index saw a decline of about 12%.
