ViacomCBS Shares Tank, Trouble Looming For Network 10
Shares in Network Ten’s US parent company ViacomCBS have plummeted by a stunning 55 per cent over the last seven days, prompting fears the Aussie TV channel could be in big trouble.
ViacomCBS took controlled of the embattled Network 10 in 2017, effectively saving the network from collapsing into bankruptcy and shutting down.
But now the media conglomerate is facing its own problems after announcing pricing of its $3 billion stock sale, which it said was to fund its streaming content.
The plummeting stock prices could hurt the company’s stock sales, CFRA Research analyst Tuna Amobi told YahooFinance.
“We think the liquidation trade could pose a lingering near-term overhang on the shares, potentially compromising (if not jeopardizing) the pending equity offerings,” Amobi said.
Adding salt to the wound, failed investment firm Archegos Capital Management was also forced by banks to sell $20 billion worth of its shares in ViacomCBS.
All this turmoil has caused shares in ViacomCBS to steadily fall from its record US$100.34 on March 22 to $45.10 on April 1.
The last time ViacomCBS shares fell this much, the company was forced to make cuts across its global network – including a restructure at Network 10 in Australia.
2020’s staff cuts included the axing of beloved weatherman Tim Bailey and significant cuts to its morning show Studio 10.
Network 10 posted a staggering $226 million loss in 2019 and all signs point to a similarly dismal report this year.