ViacomCBS shares close 9%, company says it will raise $ 3 billion

The ViacomCBS logo is displayed on the Nasdaq MarketSite to celebrate the company’s merger, in New York, on December 5, 2019.

Brendan McDermid | Reuters

ViacomCBS shares closed down 9% on Tuesday, a day after the company said it would raise $ 3 billion from the stock offerings.

ViacomCBS said it will sell $ 2 billion in Class B common shares and $ 1 billion in Series A mandatory convertible preferred shares.

The stock offerings come just weeks after the company launched its Paramount + streaming service, and the offerings will help the company increase its content. ViacomCBS said it would use the funds to boost “streaming investments,” among other general corporate purposes.

Media companies have invested funds in new content as the field becomes more crowded, with competitors ranging from Netflix to AT & T’s HBO Max. ViacomCBS has said that it expects to invest around $ 5 billion in its streaming content by 2024. That’s more than the $ 1 billion reported last year. In that same time period, it expects to reach 65 million 75 million streaming subscribers.

Despite Tuesday’s share slump, ViacomCBS shares are up nearly 145% so far this year.

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