Viacom averted potential revenue loss of $1.0 billion
The talks to combine CBS (CBS) and Viacom (VIAB) (VIA) could restart any time. The New York Post reported last month that CBS was preparing to approach Viacom with a takeover offer. Viacom may have become a more attractive takeover target for CBS, as it has settled its programming dispute with AT&T (T). The settlement averted the blackout of Viacom channels on AT&T-owned satellite broadcaster DIRECTV. The settlement also averted a potential loss of around $1.0 billion in programming fee revenue for Viacom.
After clearing the programming standoff with AT&T, Viacom reaffirmed its guidance for fiscal 2019 domestic affiliate revenue growth. Viacom said in February that it was expecting its domestic affiliate revenue to grow in the low-single-digit percentage in fiscal 2019.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Sharing leading slots to dominate merger talks
CBS and Viacom have common ownership. Both companies are controlled by the family of Sumner Redstone through an entity called National Amusements. An attempt last year to merge CBS and Viacom sparked tensions, leading to CBS suing the Redstone family. CBS and the Redstone family later reached a settlement, with the Redstone family agreeing not to pursue a merger between CBS and Viacom for about two years. The settlement didn’t prohibit CBS and Viacom directors from discussing a merger of the companies on their own. A major sticking point in the previous merger attempt was who would become the chief executive officer of the combined company. Reopened merger talks between CBS and Viacom are expected to center on the CEO issue.
CBS reported revenue growth of 3.0%
CBS made a profit of $561 million on revenue of $4.0 billion in the fourth quarter, which ended in December. Revenue increased 3.0% YoY. Revenue was nearly flat year-over-year at Viacom in the December quarter. Comcast (CMCSA) and Charter Communications (CHTR) recorded revenue growth of 6.0% and 26% YoY, respectively, in the December quarter.
NVIDIA (NVDA) is a popular name in the PC gaming industry, as more than 95% of gaming enthusiasts use its GeForce GPUs.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.