Investors should buy Viacom (VIA) stock because of its attractive valuation, profitability, strong branding and potential merger with CBS Corporation (CBS). Viacom is attractive because of a temporary weakness in profitability in the Filmed Entertainment segment and uncertainty because of the merger with CBS.
Viacom is an American multinational mass media conglomerate with interests in film and television. It was created in 2005 when it was spun off from the renamed company, CBS Corporation. Voting control of Viacom is held by National Amusements, a theater company controlled by tough billionaire Summer Redstone and his daughter, Shari Redstone. Viacom has two reporting segments: Media Networks and Filmed Entertainment. The company operates in 180 countries.