CBS Corporation (NYSE:CBS) and Viacom, Inc. (NASDAQ:VIAB) both got off to a strong start today and 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 came out of the gates on fire this morning and both stocks have been in the green throughout the day. The stocks ended up trading at $57.62 per share and $37.56 per share after gains of $0.61 per share or 1.07% and $1.00 per share or 2.74% respectively.
Why The Movement Is Happening
As soon as we saw 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 Corporation (NYSE:CBS) and Viacom, Inc. (NASDAQ:VIAB) might be merging. Among other things, the Wall Street Journal has reported that CBS has retained Moelis and Goldman Sachs as advisors on a possible merger.
Of course, the merger would likely offer incredible benefits to Viacom and CBS Corporation both. 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 Corporation (NYSE:CBS) nor Viacom, Inc. (NASDAQ: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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Note: This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!