ViacomCBS plans to sell $3 billion (€2.5bn) in stock to invest in streaming.
A year ago, after Viacom and CBS were re-combined, ViacomCBS shares traded at $11.28. They were $36 in December and closed March 22nd at $100.34. Viacom said it would be selling $2 billion of Class B common stock and $1 billion in series A.
Analysts generally agree it makes sense for ViacomCBS to sell stock with its shares at such high prices.
Morgan Stanley and J.P. Morgan are the book runners for the offering, and have 30-day options “to purchase up to an additional $300 million of Class B common stock and up to an additional $150 million of Mandatory Convertible Preferred Stock,” according to ViacomCBS.