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CBS -- UNWANTED AT ANY PRICE?
Monday, December 1 2008
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Even if Sumner Redstone wanted to sell off CBS Inc. in order to pay off National Amusements' $1.6-billion debt -- something that Redstone has denied he intends to do -- he would be unlikely to find a buyer, Crain's New York Business said today (Monday). It quoted analysts as saying that "nobody would want CBS, even at bargain prices." The analysts noted that even though the network is leading in the ratings race, it relies on advertising for more than 70 percent of its revenue -- making it particularly vulnerable to the current financial downturn. On the other hand, the business publication said, Redstone might find a buyer for his other media company, Viacom, which operates a number of cable networks, including MTV, VH1, Nickelodeon, Comedy Central. Spike TV, and BET. Alan Gould, senior media analyst at Natixis Bleichroeder, told CNYB, "Cable network ratings have been holding up much better than broadcast, and cable has that dual revenue stream [from subscriber fees]."
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