Viacom (VIAB) Stock Down in After-Hours Trading, Names Committee to Evaluate CBS Merger - TheStreet

NEW YORK (TheStreet) -- Shares of Viacom (VIAB) - Get Report were falling in after-hours trading on Friday, as the company names six board members to a committee to evaluate a potential deal with media company CBS (CBS).

The panel will be made of independent directors Kenneth Lerer, Judith McHale, Ronald Nelson and Charles Phillips. Thomas May and Nicole Seligman will serve as co-chairs of the committee.

Five of the six members on the special panel were recently appointed to the New York-based entertainment company's board by controlling shareholder National Amusements.

National Amusements sent a letter urging the two companies to consider a deal, earlier this week. CBS spun-off from Viacom in 2006.

National Amusements is a privately-held movie theater company that owns 80% of the voting shares of both companies.

CBS has also formed a committee, sources told Bloomberg.

Shares of CBS closed higher on heavy trading volume on Friday. More than 7.78 million shares of CBS traded on Friday vs. the 30-day average volume of about 4.51 million shares.

Roughly 8.3 million Viacom shares traded hands on Friday vs. the 30-day average of about 4.36 million shares.

Separately, TheStreet Ratings objectively rated Viacom 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.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and generally higher debt management risk.

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

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