Bakish, Viacom Part Of Winning Wednesday
Investors aren’t spooked about the inauguration of President-elect Donald Trump, based on the overall performance of stocks yesterday (1/11). The Dow Jones Industrial Average climbed 98.75, to 19,954.28, while the Nasdaq composite gained 11.83, to 5,563.65.
Among the key gainers was Sinclair Broadcast Group, who is dealing with high debt by making controversial decisions regarding newsroom staff but has maintained its focus on profits and repaying its lenders with due ease. SBGI shares rose $1.25, to $33.60.
The big story of the day involves Nexstar, and the FCC’s approval and grant of a waiver for it to close its merger with Media General prior to the end of the incentive auction sent shares skyrocketing $4.55, to $65. That’s a five-year high for NXST. Shares in MEG were up 75 cents, to $19.28, on the news.
Also up on Wednesday was Viacom, which revealed that President/CEO Bob Bakish will earn $3 million through the end of 2019. Bakish’s target annual cash bonus under Viacom’s Senior Executive Short-Term Incentive Plan: $7 million. Bakish’s cash bonus under the SESTIP for FY2017 will be reduced by $250,000 to reflect compensation payments previously made under the October 2016 Agreements. Bakish will receive annual grants of equity compensation with a target value of $10 million under Viacom’s Long-Term Management Incentive Plan (LTMIP), comprised of a grant of Performance Share Units with a value equal to $5 million on Jan. 1 of each year and a grant of stock options with a Black-Scholes value equal to $5 million on the same day that the Compensation Committee makes its annual grant of equity awards to employees generally. VIA shares closed on Wednesday at $42.45, up 30 cents.
The RBR Radio Index rose 0.311, or 0.06%, to 604.834.
The TVBR Television Index rose 26.395, or 2.73%, to 993.078.
Nexstar, up 7.5%
Media General, up 4.0%
Sinclair, up 3.9%
Radio One, down 3.6%
Salem, down 1.5%
Tribune Media, down 1.1%