CBS Corp. Shares Up, Viacom Off in First Day of Separate Trading

Jan 3, 2006  •  Post A Comment

Shares in CBS Corp. and Viacom went their separate ways Tuesday. Wall Street appeared to give its nod to CBS while shying away from the new Viacom on the first day of trading since Viacom and CBS split at the end of 2005.

CBS Corp.’s Class A stock was up nearly 4 percent to $26.40, while shares in the new Viacom were off 3 percent to $39.99 in mid-morning trading.

Tuesday was the first trading day for the two companies, which were created at the end of the year following the breakup of Viacom. CBS Corp. consists of broadcasting and publishing properties, while the new Viacom is mainly a cable network and film studio company.

Mr. Redstone launched the breakup of the company last spring in an effort to jump-start his company’s shares and to make it easier for investors to buy shares in properties that fit their investment profile. CBS Corp., which generates a lot of cash, is being cast as the stock for investors who want dividends, while the new Viacom is considered the growth company, fueled by the global expansion of MTV Networks.