By Dhirendra Tripathi
Investing.com – Shares of ViacomCBS (NASDAQ:) rose more than 3% in Tuesday’s trade on hopes that the unwinding in the shares of the Archegos-linked companies may be over.
The company’s aggressive push in Latin America with purchase of a broadcaster in Chile added to the positive mood for Viacom shares, which have mostly been at the receiving end of traders’ wrath.
ViacomCBS will buy Chilevision from AT&T- (NYSE:) owned WarnerMedia as the media giant looks to boost its streaming audience in Latin America.
Chilevision attracted nearly a quarter of Chile’s total television viewership in 2020, according to ViacomCBS.
ViacomCBS has been in the news for all the wrong reasons lately. In a March 24 filing, the company said it would raise almost $3 billion in the sale of new equity. That send the shares tumbling as traders feared dilution.
Now of former hedge fund manager Sung Kook ‘Bill’ Hwang, was heavily exposed to Viacom and stocks of other media companies including Discovery (NASDAQ:). As the stocks slid, there were margin calls and when Hwang could not meet the demand of his brokers like Credit Suisse (NYSE:) and Nomura (NYSE:), they resorted to selling shares.
That fiasco has resulted in a $4.7 billion hit for Credit Suisse and a $2 billion damage for Nomura. Final numbers haven’t been prepared yet or at least not disclosed.
ViacomCBS shares have more than halved since trading at a record of $101.97 in March.
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