) extended its current share repurchase authorization to a total
of $6 billion as the company enhanced the share repurchase
program by an additional $5.1 billion.
Since the inception of the share repurchase plan in Jan 2011,
the company bought back $3.75 billion worth of shares. Alongside,
CBS Corporation announced a quarterly dividend of 12 cents a
share to be paid on Oct 1, 2013, to shareholders of record as of
CBS Corporation has been actively managing its cash flow by
generating healthy free cash, making prudent capital investments
and enhancing shareholders' return. Moreover, the company
is focused on lowering its dependency on advertising and is
laying more emphasis on increasing subscription based revenue
Earlier it announced that Platinum Equity has made an offer to
buy assets of its CBS Outdoor International business for about
$225 million. Moreover, the company decided to convert its CBS
Outdoor operations in North America and South America into a real
estate investment trust ("REIT") and divest its Outdoor
businesses in Europe and Asia.
Alongside, CBS Corporation further strengthened its ties with
) by extending its multiyear streaming video deal for select
library content. Moreover, it entered into a deal with
). These measures facilitate CBS in monetizing its content.
The company also acquired the remaining 50% stake in TV Guide
Digital, including the TVGuide.com and TV Guide Mobile properties
Lions Gate Entertainment Corp
). The addition of TVGuide.com to CBS' impressive portfolio is
believed to be a major boost for the company's digital business
as both TVGuide.com and TV Guide Mobile enjoy a strong audience
in the lucrative TV information category.
We expect the company to benefit from reverse compensation
from affiliates, strong demand of its content, digital
distribution, syndication sales and retransmission consent.
CBS currently holds a Zacks Rank #2 (Buy).
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