CBS Stock Up, Radio Division IPO Planned

CBS stock is rising as the company prepares for a long-awaited spin-off of its radio division.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- CBS (CBS) - Get Report  stock is up 0.36% to $54.86 today after the company announced it would take its radio division public by the end of the month.

The announcement appeared in a prospectus for senior notes due 2020.

CBS's radio stations have been part of the company since its founding in 1927. Bloomberg reports that the decision to spin off the company's radio division could come from a lack of potential buyers.

The local broadcasting division for the company reported sales of $2.6 billion for 2015, which was CBS Radio's lowest since 2009.

CBS Radio, which Bloomberg reports could be worth $2.9 billion, owns and operates 117 radio stations in the U.S. Rival iHeart Media owns 861 U.S. outlets.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and good cash flow from operations.

TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.

You can view the full analysis from the report here: CBS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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