Home Hollywood News ViacomCBS Raising $3B In Stock Sale to Bolster Streaming Push

ViacomCBS Raising $3B In Stock Sale to Bolster Streaming Push

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ViacomCBS Raising $3B In Stock Sale to Bolster Streaming Push
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Sales of Class B common stock and Series A convertible preferred stock come on the same month that the company officially launched Paramount +, and the company’s stock price increased. ViacomCBS is looking for some new cash to increase its push into streaming. The company said on Monday that it would take $ 2 billion in Class B Common Stock and $ 1 billion in Series A Mandatory Convertible Preferred Stock.

In a statement, the company said it would use the cash generated from the sale “for general corporate purposes, including investment in streaming.” The company relaunched its CBS All Access streaming service as Paramount + earlier this month, announcing a series of reboots, spinoffs, and original series and movies in the process. On an investor day in February, the company said it expects to increase its streaming content spending by $ 5 billion by 2024.

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Disney + is already at the top with 100 million subscribers, and HBO Max is set to launch its own ad-supported offering in June, promoting Paramount + Pluto to its existing customer base (CBS All Access and Showtime More than 19 million). Offering free, ad-supported streaming.

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Morgan Stanley and JP Morgan are book runners on 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 preferred stock,” according to ViacomCBS. The convertible stock will automatically convert to Class B common stock on 1 April 2024, unless previously converted.

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Sales of $ 3 billion also come as ViacomCBS ‘share price has risen in recent weeks. On 23 February, a month earlier, 23 stocks were trading at just $ 64 a share. As the market closed on Monday, the company’s shares were trading at more than $ 100 each.

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