VIACOM, SEAGRAM EARNINGS LIKELY OFF.Byline: Dave McNary Staff Writer Media giants Viacom Inc. and Seagram Co., both hit by investor jitters jitters 'Butterflies' Psychology An episode of nervousness or anxiety that often precedes a public event; jitters is a type of performance anxiety which may affect actors in a stage production–stage fright or soloist musicians; it may respond to anxiolytics in recent weeks, are scheduled to report lower third-quarter earnings today than their 1998 figures. For Viacom, the report will be the first since its stunning Sept. 7 announcement of its $37 billion buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of CBS (Cell Broadcast Service) See cell broadcast. . The combination will create a worldwide empire with powerful content and distribution that can reach all demographic audiences once the merger is completed next year. Investor optimism pushed Viacom shares to $48 after the deal, but the issue has declined 14 percent since then amid a cooling overall market. The stock closed Wednesday at $41.125, up 43 cents, following a report that Viacom executives may be re-thinking their plan to spin off the Blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. video retail chain. First Call's survey of 13 brokers gave a consensus earnings forecast of 15 cents a share, down 25 percent from the 1998 period. Blockbuster, which is 82 percent owned by Viacom, reported Wednesday third-quarter profits of $22 million, or 14 cents a share, a penny ahead of forecasts. Cash flow rose 28 percent, to $128.6 million. ``I'm looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. Viacom to show strength in all its divisions,'' said Barry Hyman, an analyst with Ehrenkrantz King Nussbaum. ``But I'm confused about Blockbuster. I want to be able to value Viacom as a pure media company.'' Marvin Roffman, a principal with money manager Roffman Miller Associates, said Blockbuster's recent performance may force Viacom to reconsider re·con·sid·er v. re·con·sid·ered, re·con·sid·er·ing, re·con·sid·ers v.tr. 1. To consider again, especially with intent to alter or modify a previous decision. 2. its spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. strategy. ``A lot of people believe technology will obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. the business, but I still believe in earnings,'' he added. Seagram, the parent of Universal Studios, delivered a pleasant surprise to investors Wednesday when it announced it had moved its reporting date for third-quarter results up two weeks to today from Nov. 3, saying it has ``confidence'' that its businesses are ``fundamentally sound.'' Seagram shares began sliding the day after the Viacom/CBS deal on worries about Universal's films and concerns that promised synergies have not developed in its music business, which became the world's largest after its $10.4 billion buyout of PolyGram a year ago. Shares lost 30 percent of their value in the last six weeks, then jumped $4.50 to $41.50 Wednesday. ``They've seen the stock dropping every day, so this is an intelligent decision to show the Street that things aren't worse than they think,'' Hyman said. ``We're expecting weaker music comparisons but the other divisions are going OK.'' First Call's consensus estimate of 13 brokers is for a loss of 32 cents a share, which would match the $129 million second-quarter loss, compared with profits of 27 cents a share in the 1998 third quarter. Some of the 1999 losses stem from carrying over the expenses of earlier flops such as ``Meet Joe Black,'' ``Babe Babe Paul Bunyan’s blue ox; straightens roads by pulling them. [Am. Lit.: Fisher, 270] See : Strength : Pig in the City,'' ``Virus'' and ``EdTV.'' |
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