Tuesday, January 13, 2009

Market Beating You Up?

Sumner Redstone

A month ago, Sumner Redstone was forced to dump $233 million worth of Viacom and CBS stock to help pay off part of an $800 million loan his National Amusements holding company defaulted on. After that, rumors were running wild that he was on the verge of selling CBS or Viacom.

While he's yet to sell either media company and claims he wouldn't dream of doing so (in public at least), both companies' tumbling stock prices have reduced the value of Sumner's stakes. Five months ago, his CBS and Viacom stock holdings were worth $5.1 billion. As of early October, they were down to roughly $2 billion. But on November 25, The New York Times speculated because of the situation at National Amusements, where the assets are worth not much more than the debt, as well as his decimated Viacom and CBS stock, that Sumner might not even be a billionaire anymore.

Now that is some real dojo.