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Redstone’s Stock Sales Send Viacom, CBS Shares Up

Oct 20, 2009  •  Post A Comment

Sumner Redstone’s sale of nearly $1 billion in shares of Viacom and CBS stock sent share prices in both companies up, the Los Angeles Times reports.

Usually when the chairman of a company sells his own shares, the opposite happens. But Wall Street has been concerned for some time that Redstone’s National Amusements, controlling shareholder in both companies, was struggling to pay its debt, which could have hurt the two if National Amusements was forced into bankruptcy.

Proceeds from the stock sales are being used to pay down National Amusement’s debt, apparently easing the concerns of some CBS and Viacom investors.

–Elizabeth Jensen

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