VIACA - Top performer ViacomCBS sells off amid risks in $3B share offering

ViacomCBS is seeing a heavy sell-off ([[VIAC]] -6.8%, [[VIACA]] -6.5%) in the wake of its $3B share offering ($2B in class B common shares, and $1B in Series A Mandatory Convertible Preferred Stock). That's a move to get a cash infusion into its recently launched Paramount Plus streaming service as well as its ad-supported Pluto TV initiative. The issuance may lead to a "significant" decline in the stock price if institutional demand is weak, Barclays' Kannan Venkateshwar says. That's a risk that's "not immaterial," he writes, pointing to conversations with investors in 2021. The offering itself is less of a surprise after ViacomCBS came into yesterday as the S&P 500's top performer of 2021, up 169% year-to-date. Looking further back, to pandemic lows, [[VIAC]] is up 713% over the past year; it could be had at $11.28 last March vs. $93.52 today.

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Top performer ViacomCBS sells off amid risks in $3B share offering