You can lose money backing the wrong horse
Billionaire Sumner Redstone got caught in the credit crunch Friday.
The 85-year-old mogul, who has long bragged about his financial savvy and competitive drive, was forced to sell a fifth of his family's stake in his two media companies -- Viacom Inc. and CBS Corp. -- on a day when the companies' shares were trading at record lows... On the most volatile trading day in the stock market's 112-year history, Redstone's family's holding firm, National Amusements Inc., had to dump $400 million of nonvoting B shares in Viacom and CBS to raise cash to "pay down debt to comply with covenants under [the company's] credit agreements," according to a statement from National Amusements...
Regulations require companies to publicly provide financial guidance whenever insiders sell large blocks of stock shortly before earnings reports are released. CBS is scheduled to release third-quarter results Oct. 30, and Viacom on Nov. 3.
The revised guidance issued Friday was bleak. Both Viacom and CBS lowered earnings estimates, blaming the world financial crisis for weaker advertising sales. They said the situation could get worse.
Why, if this was a movie and there weren't jobs and pensions at stake, this would kind of satisfying to watch.
Yesterday, the chairman of CBS's parent company chose Hong Kong as a place to drop a little bomb. Sumner Redstone, who calls himself a "liberal Democrat," said he's supporting President Bush.
The chairman of the entertainment giant Viacom said the reason was simple: Republican values are what U.S. companies need. Speaking to some of America's and Asia's top executives gathered for Forbes magazine's annual Global CEO Conference, Mr. Redstone declared: "I look at the election from what's good for Viacom. I vote for what's good for Viacom. I vote, today, Viacom.
"I don't want to denigrate Kerry," he went on, "but from a Viacom standpoint, the election of a Republican administration is a better deal. Because the Republican administration has stood for many things we believe in, deregulation and so on... from a Viacom standpoint, we believe the election of a Republican administration is better for our company."
Well played, sir.
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That man is no liberal democrat.
Morning Julia, HA-ha.
In Redstone’s little bomb he refers to Republican values.
The true meaning of value (material worth) has been replaced in this country by “Growth” and “Speculation” and “Derivitives” and such.
I’ll be interested in watching contract negotiations for professional sports players this year…
Too damn bad it wasn’t four fifths.
Namaste, Julia, Elliot
He supported the wrong Texan. Would have been so much better off if he had stood by Dan Rather.
No, no, Sumner..the rule IS: Buy LOW..Sell HIGH.
How’s Ruppert Murdoch doing?
Namaste
you are so right.
That’s one of the many differences between me and you, Reprobate Redstone. You vote for your company and I vote for my country.
Good Morning, Pups.
OT - Woke up to helicopter noise, looked out window to pink sky above the hills at 5:00 am. Forest fire in canyon 3 miles from my house. They are evacuating the canyon 1 mile from our home. This is horse territory and they are getting them out. Fairly scary. How much more can my nerves handle? We’ll have to see.
Be careful and stay safe. Hope all will be well.
Thank you. They’ve got the superscooper planes dropping water, now that the sun is up. It all depends on the winds, I suppose.
Morning Dawgs -
It’s a schadenfreude morning.
OBee - JoeBee 08!
Stay safe Demi, and don’t hesitate to get out if you have to.
:) I’m a law abiding citizen and will do what I’m told, especially when it comes to the safety of my family.
OT: A pretty good Doonesbury today.
Too bad he wasn’t forced to sell one-fifth of that toupee.
OT:
Just saw an ACORN person on CSPAN (Bertha Lewis) that just crushed all the arguments throw buckshot by the three establishment folks.
She crushed it.
Its clear that the USAG scandel and what is investigated and what is reported is off the wall.
Gawd, lets see how much this is talked about versus the leadership of Ohio and their fraud. Or even to some degree what is believed about FLA Bush-v-Gore (Katherine Harris anyone)?
I love the line that poor people destroyed the economy of the billionares (or the middle class).
That is scary. Reminds me of the 1999 tornado that came within about a quarter-mile of my house. Hoping that you experience a miss as well.
Also, WRT CBS, it’s hard to imagine that their advertising sales are off that much. Maybe they’ve had to lower their rates a bit?
I would love it if the sales in Viacom’s damnable “outdoor advertising” division tanked.
On topic:
This is one of the big items - picked winners and losers (just like my OT above on selective investigation and procecusion).
Oh, gosh, I hope so too. 1/4 mile was pretty close for you. Yikes.
Maybe the best revenge against fear is eating well. We went out for a big family birthday dinner last night. I’m sharing my petit filet mignon leftovers scrambled eggs with my hound dog right now. Why not, right?
She was very good but one of the people (the guy from the Hill) backed down at the end and admitted she had answered all of the questions but that he would like to verify with election officials.
They’re getting set to say that the election was stolen when OBee wins.
Kristol berating the McScum campaign on Faux. I love it when the rethugs start eating their own.
What year is this, and which planet am I on?
Sure.
Lived in tornado country all my life and 1999 was the only time I was really scared. Took cover in the bathtub.
Billionaire CEO’s do not lie do they?
My googling fails to confirm this. Perhaps someone can prove this claim. The Master List of Tricky Dicky enemies does not include Mr. Redstone. Perhaps Redstone confused himself with Daniel Shorr. I am sure Redstonewould not lie about his helping break Japanese codes during WWII.
Let me guess. Sardonicus is upset that McSFB isn’t running a pure neoconservative campaign and is losing ground because what we need is even less government regulation and more military intervention in the affairs of other nations.
Hasn’t the precident been set that they can say anything they want about stolen elections? Didn’t mean anything 4 and 8 years ago.
That was from 2004. I had to do a double take myself.
Is it true that trailer parks attract tornados?
Thanks Julia.
digg
Actually Kristol was upset that McScum and Failin weren’t on all the Sunday shows, including Faux. Really pissed, called it something like criminal.
*g* Just seems like it because it takes so little (relatively) wind to damage them.
Actually it is that trailers (which the industry prefers to call manufactured housing) are less able to withstand winds.
To quote Little Oral Annie, “That’s all you got?”
Sardonicus’ ideology is goin’ down in flames and now he acts even more the petulant child he is.
All news is connected. Five years ago, almost to this date, there were terrible fires near here. We were in the process of closing escrow on this house. The mortgage company wanted us to email them photographs of this house, which we did. But, how would they know if the pictures hadn’t been taken weeks before? Stupid mortgage companies!
IMHO, all these old
kick the damn government the hell out of my way on the road to superwealth“ more deregulation” soundbytes, create some serious momentum towards getting corporate money out of our federal, state, and local elections.I thought that this dude was going to get a personal bailout on the assumption that he is too big to fail. Once the government owns all the banks and lending institutions, you will no longer have the option to default on a loan through bankruptcy and they will be treated like tax liens. Debtors prisons aren’t far off. It’s already law in Mississippi and probably elsewhere that inability to pay child support (unemployed, disabled, etc) is no defense and you will be put in jail.
Enjoy.
The MSM is picking on them you know - asking them tough questions like what do you read
I know it is trivial, and I should not beat a dead horse. But Kookie Roberts hair style does look like a dead horse.
Yes, but they’re Republicans!
Dean Baker has a new post at Oxdown that made the front page: Bailout Scorecard: Ignorant Masses 1, Elites 0
Morning, folks. You’re up early.
Demi, scary. Be safe.
Kristol’s got to be getting cranky - his build-your-own Quayle kit appears to be missing some parts.
Too bad this thread got hosed, it was going so well.
First reaction: Oh, good.
But, alas, many people’s lives at issues here–not just CBS (formerly a good news operation) but many who work in publishing books. Yes, Virginia, there are still some book readers out there.
and Frank33 @ 44: The Society for the Protection of the Reputation of Dead Horses will be paying you a visit soon.
http://www.guardian.co.uk/comm.....editcrunch
Sumner Redstone has no place to turn to for relief it seems. A loss of 20% now may look inviting later. Poor(er) Sumner.
Thanks, Julia. Before the talking head shows came on, the news was showing that it looked like the firefighters were winning. Hard to tell from my ground view. Think I’ll go ahead and get ready to go to church.
As was stated, I’m sorry about the disruption of employees’ jobs and live - it’s a boat we all may be in, but I’ll tell ya, watching Sumner fucking choke on those Gooper values is sweet.
Deregulation meaning Viacom could buy new media properties in markets they already had a media presence meant that Viacom could get bigger. Not better sure HBO is good but Showtime lost “Dead Like Me” they backed out of “Kindred the Embraced ” after the star died.
For whatever reason HBO gets the best Showtime gots the ” L Word ” and “Weeds” two great shows but not quite great enough for most people to buy a more expensive cable package.
And now the economy is going down expensive cable with HBO is likely to drop soon.
So lets list Viacom’s failure’s too big to many channels to supply enough good content too. Also to pricey which hurts the good shows it has on Showtime.
Third pricing structure if HBO until recently had all the good shows then why buy Showtime with less good shows unless money was no object.
After all rabid fans will watch the shows but first they have to watch them which explains why Showtime never got the fans cheaper HBO did.