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Turnaround Letter
Out-of-Favor Stocks with Real Value

Viacom, CBS Merger Closes. Retaining our Buy Rating.

Turnaround Letter Buy-rated Viacom (VIAB) completed its merger with CBS on Wednesday evening. In the all-stock combination, Viacom B shareholders receive .59625 shares of new ViacomCBS common stock, which now trades under the VIAC ticker symbol. New ViacomCBS shares currently trade for about $40/share.

The combined company will be led by CEO Robert Bakish, who has done a solid job of improving Viacom since he took the helm in October 2016.

We like the prospects of the newly combined company and are retaining our Buy rating. Our single-point price target will be published early next week.

We rate new ViacomCBS (VIAC) shares a Buy.

Disclosure Note: One or more employees of the Publisher own shares of all Turnaround Letter recommended stocks including Viacom shares.