Viacom (VIAB): Merger With CBS Is Back On The Table - BMO
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Rating Summary:
19 Buy, 21 Hold, 3 Sell
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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BMO Capital analyst, Daniel Salomon, reiterated his Market Perform rating on shares of Viacom (NASDAQ: VIAB) as the announcement should allow Viacom to resume more normal operations after deteriorating over the past few quarters. The legal battles over governance have held up completion of SVOD agreements and have likely held up negotiations to distribute networks in certain skinny bundles or move on a potential minority investment in Paramount. What doesn't change is Viacom's ratings challenges and weak hand in negotiating network distribution, both in traditional and OTT packages.
The analyst believes that the announcement does not preclude a potential re-merger with CBS but press reports have also suggested CBS CEO Les Moonves may be tapped as CEO of both companies and it is unclear if they meant as separate entities or remerged. The analyst thinks "the possibility of a re-merger with CBS is on the table".
No change to the price target of $40.
For an analyst ratings summary and ratings history on Viacom click here. For more ratings news on Viacom click here.
Shares of Viacom closed at $43.49 yesterday.
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