What will happen to S&S if CBS goes under?
I read this morning that CBS is in jeopardy and MediaPost analyst has suggested that CBS is among the media giants that will fall in 2009. Sumner Redstone has a controlling interest but has massive debts . Part of the Redstone portfolio is Simon & Schuster.
Pali Capital analyst Richard Greenfield Wednesday reported that Sumner Redstone’s private holdings company National Amusements is preparing to sell its movie theater assets to meet a $1.6 billion loan obligation triggered by the plummeting price of collateralized Viacom (VIA) and CBS (CBS) stock that it controls. Because NAI still would have its own debt to service, Greenfield says the best strategy would be for Redstone to sacrifice his “most saleable asset”–Viacom–valued at $12 billion. Redstone says he refuses to sell either CBS or Viacom; Greenfield says he may “no longer have a choice.”