Redstone selling $400M Viacom, CBS stock

NEW YORK, Oct. 19 (UPI) -- U.S. theater chain owner Sumner Redstone is dumping his non-voting stake in Viacom and CBS Corp., analysts say.

Analysts said the sale of nearly $400 million in non-voting shares in the two entertainment companies by Redstone's National Amusements theater company is likely due to the ongoing economic crisis nationwide, The Hollywood Reporter said Friday.

The unidentified industry observers said the company, which holds Redstone's shares in the two groups, will likely use the proceeds to comply with credit covenants and pay back debt.

The observers told the Reporter National Amusement officials likely delayed the stock sales in hopes the struggling economy and Wall Street market would improve.

A National Amusements branch controls 46.8 million Class A voting shares in both Viacom and CBS Corp. The company unit also maintains 23.4 million Class B non-voting shares in Viacom and 39.8 million of Class B shares in the CBS group.