Shares in Network 10’s parent company ViacomCBS took a tumble after the media giant announced its $3 billion stock sale to fund its new streaming service.
ViacomCBS launched its in-house streaming platform Paramount Plus in March and has revealed it intends on using the cash influx from stock sales to fund its “investment in streaming”.
The company, which bought out Australia’s embattled Network 10 in 2017 for $123 million, said it would price 20 million shares of its Class B common stock at $85 per share and 10 million shares of its Series A at $100 a share.
ViacomCBS made the announcement on Monday, triggering a selling spree which stripped the shares of 20 per cent of its value in just three days.
Shares are currently sitting at $70.10, down 23 per cent.
The entertainment giant debuted Paramount Plus on March 4, with subscribers moving over from the company’s previous CBS All Access service.
By the end of 2020, ViacomCBS had raked in 29 million subscribers and has a goal of 65-75 million subscribers by 2024.
The company said it spent around $15 billion on content in 2020 and by 2024 it expects to spend around $5 billon on the platform.
