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Aug. 13, 2019, 2:24 p.m. EDT

CBS, Viacom stocks rally after all-stock merger deal announced

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By Tomi Kilgore

Shares of CBS Corp. rallied 1.4% and of Viacom Inc. /zigman2/quotes/202976785/composite VIAB +0.13% gained 1.3% in afternoon trading Tuesday, after the media and entertainment companies announced a deal to merger, creating a combined company--ViacomCBS Inc.--with more than $28 billion in revenue. Under terms of the much-anticipated all-stock merger, each Viacom Class A share /zigman2/quotes/203869229/composite VIA +0.44% will convert into 0.59625 Class A shares of CBS /zigman2/quotes/206702514/composite CBS.A +1.33% and each Viacom Class B share will convert into 0.59625 CBS Class B shares. At current stock prices, Viacom's market capitalization is $11.55 billion and CBS's market cap is $18.08 billion. The deal is expected to close by the end of 2019. The deal will add to earnings and is expected to deliver $500 million in annualized synergies with 12-to-24 months of the deal's closing. CBS shares have rallied 10.8% year to date and Viacom's stock has advanced 12.0%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.00% has gained 16.8%.

Read the full story:
Combined ViacomCBS aims to bulk up on content ahead of the coming streaming war

/zigman2/quotes/202976785/composite
US : U.S.: Nasdaq
$ 22.76
+0.03 +0.13%
Volume: 4.64M
Oct. 15, 2019 4:00p
P/E Ratio
5.62
Dividend Yield
3.51%
Market Cap
$9.17 billion
Rev. per Employee
$1.25M
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/zigman2/quotes/203869229/composite
US : U.S.: Nasdaq
$ 25.29
+0.11 +0.44%
Volume: 31,327
Oct. 15, 2019 4:00p
P/E Ratio
6.24
Dividend Yield
3.16%
Market Cap
$10.16 billion
Rev. per Employee
$1.25M
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/zigman2/quotes/206702514/composite
US : U.S.: NYSE
$ 41.76
+0.55 +1.33%
Volume: 5,758
Oct. 15, 2019 4:10p
P/E Ratio
5.12
Dividend Yield
1.72%
Market Cap
$15.44 billion
Rev. per Employee
$867,543
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/zigman2/quotes/210599714/realtime
US : S&P US
2,995.68
+29.53 +1.00%
Volume: 1.68B
Oct. 15, 2019 5:00p
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