Document Analysis NLP IA
FREQ, RAKE or TFIDF
Summary (IA Generated)
“We expect ViacomCBS to use the proceeds to reduce its debt over time and view the sale of CNET as consistent with its stated plans to sell non-core assets to reduce its leverage.
S&P analysts said that while ViacomCBS’s debt is still high at 4x for the cost of the sale of CNET, they expect the company’s leverage to improve to about 3.
ViacomCBS has also been looking to offload its Simon & Schuster publishing unit as part of the push to focus its assets on video-based content, including the recent rebrand of CBS All Access to Paramount+.
In February S&P analysts revised their outlook on ViacomCBS to negative due to the company’s weaker-than-expected results and high level of debt following the long-awaited merger between Viacom and CBS.
“However, due to the uncertainty created by the COVID-19 pandemic, the timing of these asset sales is uncertain and will likely be delayed into 2021,” analysts wrote.
“We will now look to resolve the negative outlook in 2021 when we get more clarity about the timing and amount of proceeds from the non-core asset sales, as well as the company’s ability to improve its operating trends despite the continued economic uncertainty and increasingly competitive media landscape.