September 28, 2020

ViacomCBS Sale of CNET Is a Modest Step in Plan to Refocus on Video

Analysts at S&P Global Ratings said in a note on Tuesday that they expect ViacomCBS’s sale of tech website CNET to Red Ventures to “modestly reduce” ViacomCBS’s leverage. The move is a continuation of ViacomCBS’s recent business plan of selling off assets it views as non-essential to the future of the company’s core video business in hops of chipping away at debt. “We do not think the sale will affect the company’s size and scale because CNET is not part of its video content business,” S&P analysts wrote on Tuesday. “We expect ViacomCBS to use the proceeds to reduce its debt over time and view the sale of CNET as consistent with its stated plans to sell non-core assets to reduce its leverage.” ViacomCBS said it anticipates that the sale, which is expected to close in the fourth quarter of 2020, will provide between roughly $330 million and $350 million in net proceeds. Red Ventures’ $500 million acquisition of CNET Media Group includes multiple websites, such as Gamespot, Metacritic and TVGuide.com. Also Read: ViacomCBS to Sell CNET to Red Ventures for $500 Million Shares of Viacom have been up nearly 5% in the last five trading days, 25% in the…

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