Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Fighting a Battle, Redstone Lightens CBS and Viacom Load

By

National Amusements raises cash by selling shares.

PrintPRINT
National Amusements plans to sell a portion of its stock in CBS Corporation (CBS) and Viacom (VIA) to repay debt.

National Amusements has no plans to further reduce its holdings in CBS or Viacom and will retain about 75% of the voting control of each company when the sale is complete.

"As a result of our actions, National Amusements will be out of debt with its existing creditors and will still control its most important assets," Sumner Redstone, chairman and CEO of National Amusements, said in a prepared statement.

In February, National Amusements struck a deal to restructure about $1.6 billion in debt, pushing the maturity of the debt to December 31, 2010.

Sale of CBS stock is expected to raise about $345 million and sale of Viacom shares is expected to raise about $600 million.

Like other movie exhibitors, National Amusements must prepare to battle DVDs and video on demand.

National Amusements operates about 1,500 movie screens in the United States, United Kingdom, Latin America, and Russia under the Showcase, Multiplex, Cinema de Lux, and KinoStar brand names. The company also holds a stake in MovieTickets.com, a joint venture launched in 2000 with AMC Entertainment, Cineplex Galaxy, Hollywood Media (HOLL), Marcus (MCS), and Viacom.

So far, the movie business appears to be recession-proof. Box Office Mojo reports that 2009's box office receipts through October 12 total $8.1 billion, up 6.8% from the same period a year ago, with no increase in the average ticket price. But the movie theater industry faces major challenges ahead from Netflix (NFLX) and video on demand.

Movie studios now earn more revenue from DVD sales and rentals than theater ticket sales, suggesting theaters in the future will serve more as a marketing tool to showcase new releases and become less important to the bottom line.
< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE