ViacomCBS stock closes down 9% after company says it will raise $3 billion from stock offerings

The ViacomCBS be conscious is displayed on the Nasdaq MarketSite to possess a ideal time the firm’s merger, in Fresh York, December 5, 2019.

Brendan McDermid | Reuters

Shares of ViacomCBS closed down 9% Tuesday, a day after the firm stated it could perchance elevate $3 billion from inventory choices

ViacomCBS stated this can sell $2 billion in school B overall shares and $1 billion in Series A critical convertible most neatly-preferred shares.

The inventory choices attain factual about a weeks after the firm launched its Paramount+ streaming carrier, and the choices will abet the firm bulk up its snort material. ViacomCBS stated it could perchance utilize the funds to energy “investments in streaming,” amongst other contemporary corporate functions.

Media companies were pouring funds into soundless snort material as the arena will get more crowded, with competitors starting from Netflix to AT&T‘s HBO Max. ViacomCBS has stated it expects to invest around $5 billion in its streaming snort material by 2024. That is up from a reported $1 billion final year. In that identical time frame, it expects to hit between 65 million 75 million streaming subscribers.

Despite Tuesday’s inventory dip, shares of ViacomCBS are up nearly 145% year to this level.

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