Leading entertainment company, ViacomCBSInc. (VIAC, Financial) was a top contributor in the quarter, with shares benefitting from solid earnings results driven by revenue growth across advertising, content licensing and its subscription categories. VIAC also reported a deal with YouTube TV and continued growth in streaming. Other bright spots included the return of live golf on television and green shoots in advertising. Subsequently, VIAC announced it hired Naveen Chopra as Chief Financial Officer, a licensing deal with NBCU’s Peacock streaming service and affiliate agreement renewals with DISH Network and local broadcaster, Sinclair. In our view, premium video content is the most valuable part of the media ecosystem. Based on our sum of the parts analysis, VIAC is currently trading 43% below our estimate of private market value. At today’s valuation, we continue to believe VIAC’s risk/reward is extremely skewed to the upside.
From John Rogers (Trades, Portfolio)' Ariel Fund second-quarter 2020 commentary.
