NEW YORK (TheStreet) -- Viacom (VIAB) - Get Viacom Inc. Class B Report shares are rallying 3.39% to $38.11 on Tuesday afternoon following CEO Philippe Dauman's announcement at an investor conference that the company is searching for a minority investment in its film company Paramount Pictures.
The mass media company said it was approached by investors to sell a stake in the motion picture studio.
"In this time of change and enormous opportunity in our industry, a partnership will bring significant benefit to Paramount and Viacom, both strategically and financially, provide new opportunities for Paramount's employees and talent, and enhance long-term value for all Viacom shareholders," CEO Dauman stated.
After the deal, Viacom would maintain its control of Paramount. A deal is expected to be reached by the end of the third quarter.
This comes after Bernstein analysts yesterday noted that Viacom should sell off its assets if it wants to save itself from a "dismal cycle of perpetual declines leading to ever-decreased equity value," according to the New York Post.
Immediately afterwards shares leaped 4.5% and closed Monday's trading session up at $36.86.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find 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