CBS (CBS/NYSE) is up a bit since being bought, but hasn't done much this year. Les Moonves is boosting the company's dividend again, and CBS has announced another share repurchase. Details provided by Bloomberg:
CBS Corp., owner of the most-watched U.S. television network, raised its quarterly dividend by 14 percent to 25 cents a share, marking the fifth increase since the company was spun off from Viacom Inc. last year. CBS will also buy back as much as $1.6 billion of its stock, the New York-based company said today in a statement. The dividend, raised from 22 cents, will be payable on Oct. 1 to shareholders of record as of Sept. 14.
The stock repurchase, the second this year, is part of Chief
Executive Officer Leslie Moonves's pledge to return much of the
broadcaster's cash flow to shareholders. CBS spokesman Dana
McClintock said today the company has completed the previous $1.5
billion stock buyback, announced in February.
"Today's capital return announcement might be the last one
for a while'' because CBS may keep some of its cash to make
acquisitions, Jonathan Jacoby, an analyst at Banc of America
Securities, said in a note to investors today. Jacoby rates the
stock "neutral.''
Though CBS has done well for me, it has not been a home-run. I believe that Moonves hasn't been aggressive enough in unlocking value for shareholders and he says he won't.
Why not split CBS into three parts?
Radio/TV/Outdoor....maybe sell S&S?.
Think about it, CBS by my estimation, isn't receiving full credit for even its network and TV Stations. The market is currently giving negative or no value to Outdoor, Radio, and S&S.
But this has been going on since CBS became public and we are now getting into year 3 of CBS as a public company. Its time for Moonves to do even more to unlock the value inherent in the company.
Breakit up.
Posted by: Roger | October 02, 2007 at 07:59 PM
Roger: I agree CBS hasn't been a homerun. I was hoping Moonves would have sold off more pieces since selling the theme parks (in that one, he got more than most expected).
Maybe he wants to sell the pieces, but hasn't gotten the offers he wants. But to your larger point, Moonves has made some statements since I made this post, and I was less than thrilled by them.
Posted by: John | October 04, 2007 at 12:47 AM