- Your term project is to do a financial research analysis on the subject company and evaluate its worthiness for investment.
- The project report should have the following sections:
• Historical Performance and Price
• News and Highlights
• Financial Statements Summary
• Ratio Analysis
• Capital Structure
• Equity Valuation and Price Target
• Investment Upsides and Risks
• Investment Recommendation
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Introduction
Viacom is a leading global entertainment content company in the cable TV (CATV) industry. Viacom began as a spin-off of CBS (Columbia Broadcasting Corporation) in 1971 . They merged together in 2000 and then split again in 2005. In the early 1980’s Viacom entered a joint venture with Warner Communications and Warner Cable Communications and acquired MTV Networks. National Amusements, Inc. acquired 83 percent of Viacom in 1987. In 1994, Viacom merged with Paramount and launched MTV2 and Nick at Nite in 1996. Viacom started trading on the NYSE in 1998. In 2001, they acquired BET which focused on digital cable offerings. In 2002 and 2003 Viacom rolled out Nickelodeon, College TV Networks and acquired Comedy Central which later became MTV.U and launched Spike TV.
In 2005, after Viacom separated from CBS and became a new Viacom, their MTVN segment made a series of acquisitions included IFILM and Neopets and launched its first broadband channels. In 2006 its segments continued further acquisitions including Paramount Pictures acquisition of DreamWorks LLC. In 2007, MTV.U acquired RateMyProfessors.com, and Paramount Pictures began self-distribution in 15 countries outside North America. In 2008 Viacom and Paramount Pictures formed a joint venture with MGM and Lionsgate to create EPIX. It continued ventures, rebranding, and acquisitions in 2009: Nickelodean acquired rights to Teenage Mutant Ninja Turtles, a joint venture with India’s leading media conglomerate brought the COLORS channel to the US and BET Networks rebranded BET J as CENTRIC.
In 2010, Viacom announced a regular quarterly cash dividend and reinstituted its stock repurchase program. Its stock price has outperformed the market by a wide margin since 2009 but it most recent earnings were down. This paper looks at Viacom’s financials to determine the strength of its fundamentals and make a recommendation regarding the stock. The analysis supports a buy/hold recommendation....