| Friday | ||||
ViacomCBS and beIN MEDIA… ViacomCBS and beIN MEDIA GROUP announced the closing of the previously announced MIRAMAX transaction. ViacomCBS has acquired a 49% stake in MIRAMAX, the global film and television studio, while beIN retains a 51% stake in the company. MIRAMAX's current leadership team will continue in their existing roles. ViacomCBS acquired 49% of MIRAMAX from beIN for a total committed investment of $375M. Approximately $150M was paid at closing, while ViacomCBS has committed to invest $225M - comprised of $45M annually over the next five years - to be used for new film and television productions and working capital. In addition, Paramount Pictures entered into an exclusive, long-term distribution agreement for MIRAMAX's film library; and an exclusive, long-term first-look agreement allowing Paramount Pictures to develop, produce, finance and distribute new film and television projects based on MIRAMAX's IP. Moelis & Company served as exclusive financial advisor to beIN, while Skadden, Arps, Slate, Meagher & Flom served as legal counsel. Guggenheim Securities served as exclusive financial advisor to ViacomCBS, while O'Melveny & Myers served as legal counsel. | ||||
| Over a week ago | ||||
Needham analyst Laura… Needham analyst Laura Martin lowered the firm's price target on ViacomCBS to $20 from $50 but keeps a Buy rating on the shares. The analyst is positive on the company's ability to issue $2.5B in public bonds as announced on Friday as well as its continued expectation of achieving $750M in run-rate merger-related cost synergies over the next 3 years. Martin adds that each of these is a "key value upside driver" once COVID-19 is resolved. | ||||
On Friday, March 27th,… On Friday, March 27th, ViacomCBS stated: "As a result of COVID-19 and measures to prevent its spread, ViacomCBS is withdrawing its previous guidance as to its 2020 financial results. While ViacomCBS has experienced production delays, the company has seen increased viewership across its broadcast and cable properties, and is utilizing its deep library of content to mitigate in part the impact of those delays. The company is also working proactively to offset a portion of anticipated revenue losses through cost savings initiatives. ViacomCBS is reaffirming its expectation to achieve $750M of full run-rate merger-related cost synergies over the next three years. The company is also reaffirming its expectation to have approximately 16 million domestic streaming subscribers in pay and approximately 30M monthly active users on Pluto TV as it exits 2020. The company this week has also announced multi-year agreements to renew CBS affiliations with local stations across the country. Still, the impact of COVID-19 on ViacomCBS' businesses - including the postponement of theatrical releases domestically and internationally, cancellation or rescheduling of sports events for which the company had broadcast rights, and production delays in television and filmed entertainment programming - could be material to the company's operating results, cash flows and financial position. The magnitude of the impacts will depend on the duration and extent of the COVID-19 pandemic and the impact of federal, state, local and foreign governmental actions and consumer behavior in response to the pandemic and such governmental actions." | ||||
CBS News' executive… CBS News' executive Maria Mercader, 54, died from COVID-19 in a New York hospital, according to CBS News. Reference Link | ||||
National Amusements and… National Amusements and its wholly-owned subsidiary NAI Entertainment Holdings LLC announced that it has reached an agreement with its lenders to amend its credit facility. Following this amendment, NAI will have a revolving facility of $125M and ample liquidity, in addition to its substantial cash reserves, to fund operations of NAIEH, which includes its theater business. NAI will not sell stock in ViacomCBS and does not intend to pledge additional stock of ViacomCBS, which remains at existing levels. | |
ViacomCBS (VIAC) and… ViacomCBS (VIAC) and Meredith (MDP) announced a multi-year deal to renew affiliation agreements for all seven of its CBS Affiliates, including three top 25 market affiliates, WGCL in Atlanta, GA; KPHO in Phoenix, AZ; and KMOV in St. Louis, MO. The seven markets combined reach 7% of the U.S. audience serving more than 7.6M television households. Meredith's CBS affiliates will continue to be locally available to subscribers of CBS All Access, CBS' digital subscription video on-demand and live streaming service. It will also be widely distributed across virtual multichannel video programming distributor platforms and traditional cable and satellite services. The agreement consists of renewals for these Meredith-owned CBS affiliates: WGCL in Atlanta, GA; KPHO in Phoenix, AZ; KMOV in St. Louis, MO; KCTV in Kansas City, MO; WFSB in Hartford & New Haven, CT; WNEM in Flint-Saginaw-Bay City, MI; and WSHM in Springfield-Holyoke, MA. | |
ViacomCBS (VIACA, VIAC)… ViacomCBS (VIACA, VIAC) and Meredith (MDP) announced a multi-year deal to renew affiliation agreements for all seven of its CBS Affiliates, including three top 25 market affiliates, WGCL in Atlanta, GA; KPHO in Phoenix, AZ; and KMOV in St. Louis, MO. The seven markets combined reach 7 percent of the U.S. audience serving more than 7.6 million television households. Meredith's CBS affiliates will continue to be locally available to subscribers of CBS All Access, CBS' digital subscription video on-demand and live streaming service. It will also be widely distributed across virtual multichannel video programming distributor platforms and traditional cable and satellite services. The agreement consists of renewals for these Meredith-owned CBS affiliates: WGCL in Atlanta, GA; KPHO in Phoenix, AZ; KMOV in St. Louis, MO; KCTV in Kansas City, MO; WFSB in Hartford & New Haven, CT; WNEM in Flint-Saginaw-Bay City, MI; and WSHM in Springfield-Holyoke, MA. | |
Unusual total active… Unusual total active option classes on open include: Groupon (GRPN), Ford (F), Boeing (BA), GameStop (GME), Direxion Junior Gold (JNUG), American Airlines (AAL), ViacomCBS Class B (VIAC), Royal Caribbean (RCL), and Bank of America (BAC). | |
Bullish option flow… Bullish option flow detected in ViacomCBS Class B with 18,397 calls trading, 1.3x expected, and implied vol increasing over 109 points to 109.31%. Apr-20 17 calls and Apr-20 16 puts are the most active options, with total volume in those strikes near 7,300 contracts. The Put/Call Ratio is 0.31. Earnings are expected on May 7th. |