You will be redirected back to your article in seconds

Viacom vows to buy back 1.7% of stock

Media giant hopes to boost stockholder confidence

In a move it hopes will boost investor confidence, Viacom Inc. said Wednesday it will buy back up to $500 million in common stock over an unspecified time, effective immediately.

The buyback represents about 1.7% of the media giant’s 345 million outstanding stock.

Viacom last year completed a repurchase program valued at $2 billion worth of shares. Company also issued a $500 million stock buyback program in 1996.

Viacom, whose operations include Blockbuster, MTV Networks, Paramount Pictures, Simon & Schuster and 19 television stations, said it will finance the purchase program from working capital. It also owns an 80% stake in Spelling Entertainment Group and plans to buy the remaining 20% stake.

Despite news of the buyback, shares of Viacom fell 50 cents to close at $81 on a generally mixed trading day on the American Stock Exchange.

Viacom, however, hopes the buyback will boost its stock price, with one analyst saying “we think our stock is undervalued at these levels.”

The stock has been drifting steadily downward in recent weeks after hitting a 52-week high of $91 earlier this month.

More Biz

  • poses backstage during the Songwriters Hall

    Cara Hutchison Promoted to Vice President at Rogers & Cowan

    In a move it hopes will boost investor confidence, Viacom Inc. said Wednesday it will buy back up to $500 million in common stock over an unspecified time, effective immediately. The buyback represents about 1.7% of the media giant’s 345 million outstanding stock. Viacom last year completed a repurchase program valued at $2 billion worth […]

  • robert kirkman

    Amazon Orders Animated Series 'Invincible' From 'Walking Dead' Creator Robert Kirkman

    In a move it hopes will boost investor confidence, Viacom Inc. said Wednesday it will buy back up to $500 million in common stock over an unspecified time, effective immediately. The buyback represents about 1.7% of the media giant’s 345 million outstanding stock. Viacom last year completed a repurchase program valued at $2 billion worth […]

  • Tarana Burke. Participants march against sexual

    'Weinstein Effect' Leads to Jump in Sexual Harassment Complaints

    In a move it hopes will boost investor confidence, Viacom Inc. said Wednesday it will buy back up to $500 million in common stock over an unspecified time, effective immediately. The buyback represents about 1.7% of the media giant’s 345 million outstanding stock. Viacom last year completed a repurchase program valued at $2 billion worth […]

  • At&t Time Warner Stock Index

    Merger Perks! WarnerMedia Employees Treated to 'Robust' Discounts on AT&T Products

    In a move it hopes will boost investor confidence, Viacom Inc. said Wednesday it will buy back up to $500 million in common stock over an unspecified time, effective immediately. The buyback represents about 1.7% of the media giant’s 345 million outstanding stock. Viacom last year completed a repurchase program valued at $2 billion worth […]

  • Norman Pearlstine

    Los Angeles Times Officially Returns to Local Ownership; Norman Pearlstine Named Editor

    In a move it hopes will boost investor confidence, Viacom Inc. said Wednesday it will buy back up to $500 million in common stock over an unspecified time, effective immediately. The buyback represents about 1.7% of the media giant’s 345 million outstanding stock. Viacom last year completed a repurchase program valued at $2 billion worth […]

More From Our Brands

Access exclusive content