Tomahawk, WI 07/11/2014 (Basicsmedia) – CBS Corporation (NYSE:CBS) had a bizarre dip on Thursday, July 10, 2014, as the shares tumbled and plunged 3.33%, as Bloomberg News reported tat Aereo Inc., a startup that had been halted to operate after the US Supreme Court inferred that it had violated the broadcaster’s copyrights, rather unprecedentedly, suggested that it is of the opinion that it can operate locally merely as a cable service provider, after this decision.
The Aereo Catch 22
CBS Corporation (NYSE:CBS) had reached out to the judge on July 09, conjecturing that Aereo’s bid to reinstate its operations should be aptly dismissed. A Supreme Court’s verdict in Aereo’s favor would not only forge the company’s victory, but also depicts endangered revenues grossed up by the broadcasters. It appeared as if Aereo opted not to pay the licensing fees, pertaining to the over the air programs, that it had duly collected. This clearly appeared as a step for a myriad of other cable operators, who might stand a chance to avoid such excess payments.
CBS Seeks For Exchanges
CBS Corporation (NYSE:CBS) retorted that based on preliminary results, the previously announced IPO, seeking participation to exchange the available shares with that of a CBS Class B stock, up to volumes of shares estimating to 97 million, happened to be oversubscribed. The share price tumbled after the exchange offer expired on July 9, 2014 at 12:00 midnight (New York Time).
Well Fargo Handles An Important Role
The exquisite mass-media company that truly excels at creating and distributing leading contents in varied platforms, had taken recourse to Wells Fargo & Co (NYSE:WFC), who revealed that 304,086,134 shares of Class B common stock were actually tendered much prior to this exchange offer. The company had notified about accepting 2.1689 of common shares as an exchange modality in this exchange offer.
It is also estimated that primarily based on the subtle expiration of this exchange offer, approximately 14.6% of CBS Corporation (NYSE:CBS) Class B shares are to be tendered subject to apt proration of the exchange offer. The expiration of the delivery period is on July 14, 2014.