Viacom (VIAB) Stock Higher, In Talks About Paramount Stake with Wanda
NEW YORK (TheStreet) -- Shares of Viacom (VIAB) - Get Report are advancing 0.89% to $45.20 as Dalian Wanda Group, a Chinese real estate and entertainment conglomerate, has held discussions with the New York-based entertainment company about purchasing a stake in its Paramount Pictures unit, sources told Reuters.
Viacom's controlling shareholder Sumner Redstone has so far opposed a sale, which cannot be made without his approval.
Other parties besides Wanda have also shown interest in Paramount, so there is no guarantee of a deal, the sources added.
Wanda purchased production company Legendary Entertainment in January and has been trying to expand its U.S. movies business, Reuters noted.
Earlier this year, Wanda also invested in Paramount's "Teenage Mutant Ninja Turtles" sequel.
Wanda is in talks to buy a 49% stake in Paramount, sources told the Wall Street Journal.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on Viacom stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and notable return on equity.
But the team also finds weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, 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.
You can view the full analysis from the report here: VIAB