ViacomCBS Sinks After Announcing $3 Billion Share Offering
- Company is raising money to invest in its streaming efforts
- Dilutive effect of the sale weighs on ViacomCBS stock
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ViacomCBS Inc. declined as much as 10% after announcing a $3 billion stock sale, an effort to capitalize on a recent stock run-up and boost spending on its Paramount+ streaming service.
The company is offering $2 billion of Class B common shares and $1 billion of a preferred stock that is convertible into the Class B common, ViacomCBS said Monday. The shares are the company’s nonvoting equity. The newly issued stock will start trading on March 24, Bloomberg News reported.