Multinational mass media and entertainment conglomerate ViacomCBS Inc. (VIAC) recently revealed that it has entered into a multi-year global agreement with microblogging and social networking service major Twitter. The financial terms of the deal have not been disclosed so far.
Following the news, shares of the company declined marginally on Wednesday. The stock, however, pared its losses slightly to close at $35.45 in the extended trading session.
Implications of the Deal
The agreement will allow Twitter to deliver digital content of ViacomCBS’ biggest live events, hit shows and iconic franchises across the company’s portfolio of entertainment, news and sports brands.
Notably, ViacomCBS will also gain access to Twitter’s wide range of marketing features from live video and real-time highlights to Twitter Moments.
The SVP of Distribution & Business Development-Streaming at ViacomCBS, Andrea Wolinetz, said, “We’re thrilled to extend our long-standing relationship with Twitter in this expansive global deal that brings together the full ViacomCBS portfolio and magnifies the scale and scope of our valued partnership. Twitter is the digital water cooler for trending topics and fandom worldwide, and we’re excited to provide front-row access to innovative digital content experiences and culture-defining moments across the best of entertainment, news and sports for Twitter users everywhere.”
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Recently, Rosenblatt Securities analyst Mark Zgutowicz reiterated a Hold rating on the stock with a price target of $42, which implies upside potential of 18.7% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 5 Buys, 5 Holds and 1 Sell. The average ViacomCBS price target of $49.45 implies that the stock has upside potential of 39.7% from current levels.
ViacomCBS scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 17.2% over the past year.
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