CBS Corp. (CBS:US), the broadcaster and owner of the Showtime cable channel, will rise at least 46 percent to more than $50 from its current price below $35, Chairman Sumner Redstone said.
“As long as the company continues to perform well, and it will under Les Moonves, the stock will keep rising,” Redstone said today in an interview with Michael Milken at the Milken Global Institute 2012 Global Conference in Los Angeles.
CBS, run by Chief Executive Officer Moonves, reported an 80 percent increase in first-quarter profit yesterday, driven by sales of reruns and higher fees from pay-TV systems. The shares, which rose 2.3 percent today to $34.19, have multiplied 10-fold from a closing low of $3.09 on March 9, 2009, during the financial crisis.
Redstone, the 88-year-old billionaire, said his decision to split his two New York-based media companies, CBS and Viacom Inc. (VIAB:US), where he is also chairman, has been vindicated by Wall Street.
Viacom, the owner of Paramount Pictures, MTV and Comedy Central, closed today at $47.43 in New York, up 1.8 percent. The shares fell to a closing low of $11.96 on Nov. 20, 2008.
To contact the reporter on this story: Andy Fixmer in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Palazzo at email@example.com