Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Can Redstone Boost Growth?
http://www.businessweek.com/magazine/content/04_24/b3887048_mz011.htm


Over nearly 18 months, investors have watched as Viacom shares fell about 16%. Meanwhile, the Bloomberg Media Index, comprised of 33 companies, rose 11% in the same period, and the Standard & Poor's 500-stock index was up 28%.

...

While the company's earnings per share are projected to grow by 19% in 2004, average earnings for 30 other media companies will jump 76%, according to earnings tracker Thomson First Call.

...

Now, with Freston and Moonves in charge, the creative types may once again be given free reign. If their records are any indication, they'll be pushing the boundaries -- striking deals, launching TV channels, and greenlighting big-budget movies. Starting in 1981, Freston helped build MTV into one of the strongest TV franchises in the world. Moonves worked the same kind of magic on CBS' prime-time offerings as Karmazin once did for shareholders' wallets.

...

Where should Freston and Moonves look for growth? One quick fix would be to expand Viacom's library of older movies, which number about 1,100, compared to more than 4,000 apiece at MGM and NBC Universal. With the world going digital, Viacom needs more content to take advantage of a growing appetite for DVDs and video-on-demand. Viacom is moving forward with plans to spin off or sell its Blockbuster Entertainment unit, but analysts say it may also makes sense to sell Infinity Broadcasting, the company's biggest problem child.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.