34.81 -0.38 (-1.09%)
After hours: 4:00PM EST
|Bid||35.17 x 800|
|Ask||35.18 x 1400|
|Day's range||34.21 - 35.25|
|52-week range||29.69 - 41.95|
|Beta (3Y monthly)||N/A|
|PE ratio (TTM)||14.67|
|Earnings date||4 Feb 2020 - 10 Feb 2020|
|Forward dividend & yield||0.46 (1.34%)|
|1y target est||38.25|
Bob Iger’s new book is packaged like a standard businessperson success story, but it contains a lot of surprisingly candid reflections, and quite a few news nuggets.
(Bloomberg Opinion) -- Is it just me, or does the $100 million “severance” being paid to Joe Ianniello, the acting chief executive officer of CBS Corp., stink to high heaven? For starters, you can make a pretty compelling Elizabeth Warren-esque argument that handing a $100 million “severance” to someone who is not, in fact, leaving the company is exactly why income inequality has become such a hot-button issue.But let’s be old school about this. Let’s focus on the shareholders and how this is their money that’s being handed to Ianniello. It is also an unpleasant reminder of how the father-daughter combo of Sumner and Shari Redstone seemingly can’t resist throwing hundreds of millions of dollars at executives who have not done much for their stockholders.The Redstones, of course, control CBS through their privately held film exhibition company, National Amusements Inc. They also control Viacom Inc., which Sumner Redstone bought for $3.4 billion in 1987. (Viacom acquired CBS in 1999.) Until 2016, Sumner Redstone, now 96, was the executive chairman of both companies, though he had largely disappeared from public view two years earlier amid allegations that he was in serious decline. Shari Redstone, 65, is the vice chairman of both companies.In 2003, when CBS was still part of Viacom — and Sumner Redstone was still in charge — Les Moonves became its CEO, a position he retained when CBS was spun off in late 2005. Between 2007 and 2018, when Moonves was fired for sexual improprieties, the CBS board, led by the Redstones, paid him just shy of $700 million, according to figures compiled by Bloomberg. That’s an average of $63.6 million a year.I happen to think that $63 million a year is an absurd amount to pay a manager to run a company. But even if you accept that entertainment companies pay their executives insane amounts — Discovery Inc. paid its CEO, David Zaslav $129.4 million last year, for crying out loud — it is reasonable to assume that such an outsized paycheck would be justified by outsized performance.Not so. During the Moonves era at CBS, the S&P 500 Index returned an average of 9% a year. CBS returned 8.7% a year. In other words, the Redstones and the CBS board paid hundreds of millions of dollars of its shareholders’ money to a man who could barely keep pace with an index fund. (By comparison, the Walt Disney Co. returned 14.6%, and 21st Century Fox returned 10.5%.)The situation at Viacom is even worse. Remember Philippe Dauman, the former CEO whom Sumner Redstone once called “the wisest man I know”? He ran Viacom for a decade, from 2006 to 2016. According to Equilar, a company that compiles executive compensation figures, his compensation during those 10 years was nearly $500 million — while the stock gained a paltry 2.7% a year on average. You may recall that Dauman wound up in a nasty court fight with the Redstones in 2016, trying to keep his job by contending that Sumner Redstone was no longer mentally competent to make key business decisions. After winning that battle, the Redstones still handed Dauman a parting gift as they pushed him out the door: a $75 million severance package.Which brings us back to Ianniello. Although he has been acting CEO only since Moonves departed late last year, Ianniello has also been the recipient of the Redstones’ largesse: Between 2016 and 2018, as the company’s chief operating officer, his compensation averaged $27 million a year, according to Bloomberg. The stock? It dropped from the low 70s to the mid-40s during those three years. This is what’s known as “pay for pulse.”So why did Shari Redstone feel the need to hand Ianniello an additional $100 million? The reasons are twofold. First, Redstone is recombining Viacom and CBS. She doesn’t want Ianniello to leave — at least not right away — but she also isn’t going to make him the top dog. Second, for legal reasons, she can’t ramrod this deal through by herself, even though she is the controlling shareholder. She needs the CBS board and senior management to support the bid. “You need Joe to get the merger done,” Robin Ferracone, the CEO of executive compensation consulting firm Farient Advisors, told Bloomberg. “So you need to make him indifferent to whether he’s going to lose his job or not.”Yes, $100 million is certainly likely to buy a whole lot of indifference. Then again, $10 million probably could have achieved the same result. And in any case, if Shari Redstone needs $100 million to, er, persuade one of her executives to support her merger plan, maybe that suggests the merger’s success is not exactly a slam dunk.I have a hard time seeing how combining two underperforming media companies with a hodgepodge of assets will create a worthy competitor to powerhouses such as Disney, which rolled out its Disney+ streaming service on Tuesday morning, and AT&T, which next year will bundle its media assets into another streaming entrant, HBO Max. But Shari Redstone wants to combine Viacom and CBS, and with the help of that $100 million, that’s what’s going to happen. When the companies are merged, which is expected to take place next month, the CEO of the combined entity will be Bob Bakish, who is Viacom’s CEO.Since he took over Viacom, Bakish’s compensation has been surprisingly normal, at least by modern CEO standards. According to company filings, he received about $20 million a year in total pay in 2017 and 2018.But fear not. Once the deal is done, Bakish’s pay is set to jump to more than $30 million. I predict that he’ll be in Moonves/Dauman territory in no time. After all, overpaying executives is the Redstone way.To contact the author of this story: Joe Nocera at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
As streaming has turned the television industry on its head, one media mogul went against the trend this year. He revealed the advice from News Corp. Founder Rupert Murdoch by way of Oracle CEO Larry Ellison that led him to do it.
News Corp is in talks to sell News America Marketing after impairments against the advertising business dragged it to a $US227 million first-quarter loss.
Roku's (ROKU) third-quarter 2019 results are likely to benefit from the popularity of The Roku Channel and its ability to enhance user experience.
DISH Network's (DISH) third-quarter 2019 results are likely to reflect persistent loss of subscribers due to stiff competition and cord-cutting in the Pay-TV industry.
An international political uproar recently placed Apple and the National Basketball Association under intense scrutiny—but one television mogul says there remains a strict divide between business and politics.
MGM Resorts' (MGM) top line in third-quarter 2019 is likely to get reflected in robust performance of both China and domestic operations.
Fox Corporation (FOXA) and Charter Communications extend a multi-year distribution agreement to deliver news, entertainment and sports content of the former on the latter's network.
(Bloomberg) -- James Murdoch, a son of Fox Corp. founder Rupert Murdoch, said he doesn’t watch the company’s flagship news channel and sees a lot to like in Democratic presidential contender Pete Buttigieg.Murdoch, speaking at Vanity Fair magazine’s New Establishment Summit conference on Wednesday, said cable news channels have become too one-sided politically and “there’s plenty on Fox News I disagree with.”The 46-year-old executive, who worked at his father’s business empire for 25 years, said he was disappointed to hear that Shepard Smith, one of the main hard-news voices at Fox News, had left the network.He also said he doesn’t watch “Succession,” the HBO series modeled in part after the Murdoch family.Murdoch said social issues, such as rising mortality rates for mothers in the U.S., concern him and his wife, Kathryn. While stopping short of an endorsement, Murdoch said he thought Buttigieg, the mayor of South Bend, Indiana, and one of the first openly gay candidates for president, “has the composure, character, thoughtfulness and courage to handle some of the hardest challenges we have.”He said he would like to see politicians rethink how taxes are collected and allocated and recognizes that the wealthy may end up paying more.James, the youngest of three children from Rupert’s second marriage, has always been considered the most progressive member of the clan. He said he does benefit from the success of Fox News, indirectly through a family trust which his father controls.Through his investment firm, Lupa Systems, Murdoch has taken stakes in a number of new-media companies, including the millennial news outlet Vice Media and the Void, a virtual-reality entertainment provider.To contact the reporter on this story: Christopher Palmeri in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Facebook's (FB) Watch to receive sports-related digital shows and content from recent partnership with Fox Sports amid the intensifying sports streaming battle.