(Bloomberg) — ViacomCBS, which is changing its name to Paramount Global, fell the most in almost 11 months on Wednesday after its earnings missed Wall Street estimates by a wide margin and sparked investor concerns about the cost of its foray into streaming.
With its cable revenue eroding, ViacomCBS is making a go-for-broke attempt to align the company behind its Paramount+ streaming service.
That could make it a less likely takeover candidate in future media consolidation.
Similarly, AMC Networks Inc. fell as much as 22% — its biggest-ever intraday drop — after forecasting a 10% decline in adjusted operating income as it invests in content, including shows like “Better Call Saul” and “Killing Eve” for its streaming service.
ViacomCBS, which reported earnings on Tuesday after the close of markets, also fell as much as 22% on Wednesday.
ViacomCBS said Paramount+ added more than 7 million subscribers in the fourth quarter for a total of 32.8 million worldwide.
Including BET+ and Showtime, ViacomCBS has 56 million subscribers to its full roster of streaming services.
Benchmark cut its 2023 free cash flow estimate for ViacomCBS to $229 million, from $1 billion, after the company’s ‘shifting of the goalposts,” according to analyst Daniel Kurnos.
“At least it feels like all the cards are on the table now,” he wrote in a note to clients.
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