Many analysts think that CBS has been holding Viacom back. They could be right. After all, Viacom was the world's fastest-growing media company before it bought CBS. And profitable "synergies" foreseen by managements have a bad habit of never being achieved.
That said, keep on eye on CBS once it's spun-off in the first quarter of next year. Many times, a newly-independent company will trade at the price its been spun off at . . . only see its stock price fall due to a lack of investor interest and a lack of coverage by analysts. It's a safe bet that Viacom, with its valuable cable assets, will hold the attention of Wall Street.
Yet, depending on valuation, that may be a prime-time buying opportunity for CBS. Its assets aren't nearly as exciting as those of Viacom. But they're worth A LOT and they're not going away.
Mark your calendars now.
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