- Shares of ViacomCBS extended its two-day decline to nearly 30% on Thursday after its planned $3 billion equity offering.
- Investors had fueled a more than 100% year-to-date rally in ViacomCBS prior to the offering.
- ViacomCBS plans to use proceeds from the offering to invest in its new streaming platform, Paramount+
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
The epic year-to-date rally in shares of ViacomCBS is on hold after the company decided to take advantage of its recent share price gains and launch a $3 billion equity offering.
ViacomCBS extended its two-day decline to nearly 30% on Thursday. Shares were off by 23% on Wednesday, and fell an additional 6% on Thursday.
The $3 billion share offering is comprised of class B common stock and its series A convertible preferred stock. ViacomCBS is selling 20 million class B common stock at $85 per share, and 10 million series A preferred stock at a liquidation preference of $100 per share.
The company plans to use the proceeds to invest in its new streaming business, Paramount+. The rebrand and relaunch of the new streaming platform was largely responsible for driving a more than 150% rally in shares over the past few months as investors welcomed the company's direct to consumer content offering.
Paramount+ was previously called CBS All Access, but heavy spend in Super Bowl advertisements helped solidify the new name among consumers.
Shares of ViacomCBS topped out at $100 per share before falling to $66 on Thursday. Even after the two-day sell-off, shares of ViacomCBS are up 77% year-to-date.