Alternatively, several positions weighed on performance during the period. Shares of leading entertainment company ViacomCBS Inc. (VIAC, Financial) traded lower following theannouncement of a rise in content and marketing expenses for new streaming programming. Price action on this news runs counter to the company’s strong business fundamentals and its strengthened balance sheet following the sale of non-core businesses and properties. VIAC’s fresh array of global content continues to drive subscriber momentum worldwide across its digital streaming services as well as market expansion. In our view, premium video content is the most valuable part of the media industry. Based on our sum of the parts analysis, VIAC is currently trading 50% below our estimate of private market value. At today’s valuation, we believe VIAC’s risk/reward is skewed sharply to the upside.
From John Rogers (Trades, Portfolio)' Ariel Fund fourth-quarter 2021 commentary.
