Around the Net
Should Viacom Go Private?
- paidContent.org, Thursday, June 19, 2008 10:45 AM
Since last year, Viacom has seen its shares decline from a high of about $45 to below $33 this week. The solution, says Pali Research analyst Rich Greenfield, is to take the company
private.
He says the Redstone-backed group could pay $38.50 per share, saddle it up with $21 billion in debt and make a nice profit. Even at $49 per share, such a deal would be
break-even.
Another benefit: being private reduces the pressure on Viacom to do something just for the sake of doing something, such as CBS buying CNET. Viacom's assets are well positioned for organic growth, but as the stock declines, analysts agree that the pressure to swallow something big will only grow.
