CBS Corporation and Viacom were off to a relatively normal start earlier today. However, minutes ago, we noticed that both stocks started to spike upward. We believe we’ve dug up the cause. Below, we’ll talk about what we’re seeing from the stocks, why, and what we can expect to see from CBS and VIAB ahead.
CBS & VIAB Spike Higher
As mentioned above, both CBS Corporation and Viacom were off to a relatively normal start to the day. Both stocks have been in the green throughout the day. However, minutes ago, both of the stocks started to spike. CBS is heading down and VIAB is heading up at the moment. Currently (2:01), the stocks are trading at $57.46 per share and $37.22 per share after gains of $0.45 per share (0.79%) and $0.66 per share (1.81%) respectively.
Why The Movement Is Happening
As soon as we started to see the spikes, the CNA Finance team started digging to see what was causing the movement. While neither of the companies have released any fundamental news, we believe we’ve found the cause of the gains. All over social media, we’re seeing chatter that CBS and VIAB might be merging.
Of course, the merger would likely offer incredible benefits to both Viacom and CBS Corporation. However, investors on one side seem to be reacting better than the other.
What We’ll Be Watching Ahead
First and foremost, it’s important to remember that what we’re seeing in the market at the moment is being caused by rumors. There has been no confirmation from CBS, nor VIAB, that the rumors have any validity. Nonetheless, this story is likely to continue to cause movement in the market, as a merger does seem practical. We’ll be watching the story closely and bringing the news to you as we dig it up!
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[Image Courtesy of Wikimedia]