OUCH Investors were advised to sell shares of CBS Corp. The reason: radio revenue loss due to Howard Stern's departure.
The truth: CBS posted a $9.14 billion loss this year after lowering the value of television and radio assets. This was after a write-down of their radio and outdoor advertising units by $18 billion last year. Bloomberg News: "That means Viacom paid more than $60 billion for television networks in 2000 and 2001 that the company now valued at less than $30 billion."
It's reminiscent of the merger of Time-Warner and AOL when, within months of the merger in 2002, their combined company assets were devalued by $99.7 billion.
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