CBS Stock Drops Following Departure of CEO Moonves

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After the stunning departure of CEO Les Moonves was announced Sunday evening, CBS stock turned lower on Wall Street in early trading Monday.

Related: After Scandal. Moonves Leaves Big Shoes, Big Mess at CBS

Moonves left amid accusations of improper behavior over the course of a long career in TV. He also lost a power struggling with the Redstone family, which owns a controlling interest in CBS.

CBS stock traded at about $54 a share down more than 3%. Analysts expressed concern that without Moonves at the helm, the network won’t be able to turn out successful shows as consistently. Those show are the engine that drives revenue from retransmission, international sales and over-the-top subscriptions that investors are counting on.

Related: Moonves Leaves as CBS Settles Dispute With Redstones

Moonves’ departure was part of an agreement in which the Redstone family said it won’t again suggest merging CBS with Viacom, the other big media company it controls.

CBS executives, directors and shareholders were opposed to a combination with Viacom, whose cable networks have been struggling.

Viacom share were flat at about $30 a share.

Jon Lafayette
Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.