Shares of ViacomCBS Inc. (VIAC)(VIAC) dropped 4.8% in premarket trading Tuesday after media company said it started an offering of $3 billion worth of equity securities. The offering was announced after the stock soared 55.6% month to date to close Monday at a record of $100.34, marking a 12th record close so far this month ( ). ViacomCBS's equity offering includes $2.0 billion of Class B common stock and $1.0 billion of Series A mandatory convertible preferred stock. The parent of the Paramount+ streaming service, which launched earlier in March, said it plans to use the proceeds from the offering for general corporate purposes, including streaming investments. Viacom's stock has rocketed 169.3% year to date through Monday, while the SPDR Communication Services Select Sector ETF (XLC) has advanced 12.5% and the S&P 500 has gained 4.9%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 23, 2021 07:27 ET (11:27 GMT)
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