CBS SHARE PRICE IN DOWNWARD SPIRAL OVER WRITERS STRIKE AND AD SPEND DOWNTURN
December 27th 2007 23:00
The Wall Street Journal reports that with television writers on the picket lines, CBS Corp's stock price “has also been on strike.”
CBS shares have shed a quarter of their market value in a few months and the Wall Street Journal attributes that to the writers' strike that exposes CBS's reliance on its TV network, and a slowdown in advertising spending.
Ironically, when CBS split from Viacom at the start of last year, with Viacom keeping film businesses and cable networks like MTV, CBS was expected to be the slow-growth, steady-return sibling.
But its shares rose nearly 40 percent in the first 18 months out of the gate, while Viacom's performance was fairly flat.
And they’re still doing that.
According to the Wall Street Journal, “Many say it was inevitable the company would come down to earth.”
- From MediaBlab
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