SEC Reports: CEO of Viacom (CBS) dumps nearly $12 million in Stock

PreciseTruth blog ^ | 9/19/04 | self

[Capt. Tom]

Dumping stock by a CEO during a crisis like this is prima facie evidence of insider trading.

I don't think this qualifies for insider trading since everyone knows the situation at CBS; and if I had stock in it I would sell also.- Tom

[Steven W.]

He can't use proceeds in a 401K account to pay taxes.

[meyer]

Most of the shareholders are probably mutual fund owners who aren't aware that they are shareholders. Viacom stock will be very cheap soon, and I suspect that the rest of the alphabet soup media will take a small hit as well.

[GeneD]

One other thing: the class B's are non voting. Sumner still controls over 70% of the class A voting stock. I don't think anyone's going to force him out of Viacom anytime soon.

[FreedomPoster]

See the replied-to post.

Your comment makes me think even more that I'm accurate on this one, that there's truly nothing to see here. This sort of thing is done all the time to fund estimated tax payments.

[Grampa Dave]

Great job!

Last week someone was wondering if any of the top dogs at ViaCom dumped the stock before it became a loss leader.

Maybe Redstone can be Martha's cell mate in jail.

[aynrandfreak]

This is what we've been waiting for. If Drudge publicizes this on his site/show tonight, the stock should start to sell-off tomorrow (whether or not Redstone's sale was based on the scandal). Once the stock hits a new 52-week low, Heyward should quickly lose his decision-making power on how to handle the scandal, and Rather might very well be forced to resign.

[Ann Archy]

"Sell, Beekman, SELL"!!!

[Steven W.]

This is the first time he's sold stock dating back to 2002, at least.

[meyer]

Also, these shares represent less than four tenths of one percent of Mr. Redstone's holdings in this class alone.

If that's the case, then this really isn't a big deal. I guess what seems like a boatload of wealth to me might be a drop in the bucket for the elites of the MSM.

[Grampa Dave]

Okay you Pajama Wearing Graphic Artists have a challenge:

"The image of Redstone in a dress and bonnet trying to scramble onto the lifeboat ahead of the "little people" would be funny if it weren't pathetic.

[FreedomPoster]

My wife the tax CPA and stock option expert, thinks the writer doesn't have a clue, and that you can't have stock options inside a 401K.

[Grampa Dave]

What possibly might be insider trading is if Redstone knows that there were more lies and a deeper involvement, and nothing was said.

[mewzilla]

Earth to CBS's affiliates....

[stockpirate]

Well yes and no. They have to file their intention to sell shares during a certain time period. They are not required to sell the shares at that time. There also are time periods when they cannot sell shares.

They can also file a notice that states that when the stock hits X I will sell Y number of shares.

There are several ways an insider can sell shares.

[Lady Jag]

On my way out for a few hours, can't do Redstone, but Kerry is dying to see if the dresses match!

[SunnySide]

Even the big dogs know a French poodle(Rather) when they see one. Redstone, "lets FLUSH EM"

[AFreeBird]

Or one other reason. Aren't stock options usually set at some predetermined price? If C_bs is bringing down the price to that level, then it would be in his best interest to sell the stock before it gets there. Actually, with an option, he has to buy the stock (at option price) before he can sell it.

[Jim_Curtis]

Won't the shareholders for certain fire Redstone tomorrow?

What is the point of being an owner of a business when all the shareholders have to sit there and watch their company collapse even though they know exactly what needs to be done to correct the problem?

[Husker8877]

"Turn those machines back on!!!!!!!!!!!"