After the stunning departure of CEO Les Moonves was announced Sunday evening, CBS stock turned lower on Wall Street in early trading Monday.
Moonves left amid accusations of improper behavior over the course of a long career in TV. He also lost a power struggling with the Redstone family, which owns a controlling interest in CBS.
CBS stock traded at about $54 a share down more than 3%. Analysts expressed concern that without Moonves at the helm, the network won’t be able to turn out successful shows as consistently. Those show are the engine that drives revenue from retransmission, international sales and over-the-top subscriptions that investors are counting on.
Moonves’ departure was part of an agreement in which the Redstone family said it won’t again suggest merging CBS with Viacom, the other big media company it controls.
CBS executives, directors and shareholders were opposed to a combination with Viacom, whose cable networks have been struggling.
Viacom share were flat at about $30 a share.