Viacom Sale Shows Redstone Vulnerability

Oct 14, 2008  •  Post A Comment

When Sumner Redstone’s holding company, National Amusements, was forced to sell $233 million of Viacom and CBS Corp. shares to avoid breaching loan covenants, it showed how vulnerable he may be to market swings, the Wall Street Journal says. The stock of Redstone’s companies, Viacom and CBS have declined 49% and 71% respectively in the past year, the paper says. Redstone ended up selling less stock than initially planned, but could be forced to sell more if the companies’ share values fall below levels reached last week, the Journal says.
—Greg Baumann

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