December was a bad month for CBS Corporation shareholders, with values dipping to prices last seen in September 2015 — the five-year low point for the company.
So far in 2019, with the turmoil of Les Moonves and the drama of a possible reunification with Viacom in the rear-view mirror, CBS shares are on the upswing. On Thursday, a climb was seen as the company put the onus on Nielsen to get its act together should it want a new ratings contract.
On heavier than normal volume of 5.07 million shares, CBS was up 1% to $46.13.
In immediate after-hours trading, CBS gave back 8 cents, and was at $46.05.
It was a positive end to the trading session for CBS, which issued a statement on its negotiations with Nielsen that suggests the two companies are far apart.
“The entire media industry is aware of the need for complete and accurate measurement across platforms,” CBS said. “While Nielsen has made some strides in this area, progress has not been what we and many clients would like, and local TV measurement is particularly challenged.”
Despite this backdrop, CBS added, “Nielsen continues to use their market power to bundle disparate services and raise prices for services that don’t sufficiently address ongoing changes in the industry. As a result, we are currently at a contractual impasse, although we continue to be open to negotiating a fair deal that makes strategic and financial sense for CBS. If we cannot come to an agreement with Nielsen, we will continue to employ the many viable alternatives available to us, including Comscore.”
The mention of Comscore by CBS comes as Gray Television committed to the data measurement company by making it the exclusive provider of ratings currency in 80 of its 91 markets. This includes all legacy Gray markets, as well as the majority of Raycom’s legacy footprint, including two of its largest markets, Cleveland and Louisville.
This follows the news that The E.W. Scripps Co. expanded its partnership with Comscore to 33 markets, although Scripps continues to use Nielsen across its markets.
For Nielsen, shares dipped 17 cents, to $23.36 and are just three-cents away from a five-year low, established in the last several trading sessions on the NYSE.
How did other media companies fare on Wall Street? Visit the Wall Street Report on the homepage of RBR.com for your quick-glance update!
