ViacomCBS has been offloading assets it deems non-essential to its core TV, video-based business
Analysts at S&P Global Ratings said in a note on Tuesday that they expect ViacomCBS’s sale of tech website CNET to Red Ventures to “modestly reduce” ViacomCBS’s leverage. The move is a continuation of ViacomCBS’s recent business plan of selling off assets it views as non-essential to the future of the company’s core video business in hops of chipping away at debt.
“We do not think the sale will affect the company’s size and scale because CNET is not part of its video content business,” S&P analysts wrote on Tuesday. “We expect ViacomCBS to use the proceeds to reduce its debt over time and view the sale of CNET as consistent with its stated plans to sell non-core assets to reduce its leverage.”