CBS Corp. (7.6% of net assets as of December 31, 2016)(CBS–$64.65–NYSE) (NYSE:CBS) operates the CBS television network and the premium cable network Showtime. It also owns 29 local television stations and 130 radio stations. We believe that CBS has a number of opportunities to generate incremental non-advertising revenue from the sale of existing content through its OTT platforms, online video distributors and retransmission agreements with traditional distributors. In addition, we expect a continued recovery in advertising to contribute to earnings growth. Finally, we believe that financial engineering, including the split-off of its radio business, could act as a catalyst for shares.
From the Gabelli Value 25 Fund first quarter 2017 shareholder letter.
