The Viacom-CBS merger has been met with what MoffettNathanson Senior Analyst Michael Nathanson calls “the faintest of interest from the investment community.”
He says that most observers would have expected that the Viacom side of the house would be problematic. Yet, “the biggest driver of recent negative revisions to date have occurred at CBS.”
While there are costs and revenue synergies to be delivered and assets to be divested, he thinks that the structural pressures facing the industry will negatively weigh on ViacomCBS’s basic and premium cable networks as cord cutting and the attendant pressures likely accelerate.
With that said, there is one big unresolved issue facing ViacomCBS.