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AAA  Sep. 28, 2013
Eye on CBS
By RYAN NAKASHIMA
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CBS scored a big ratings win with the premiere of "The Crazy Ones," a comedy featuring Robin Williams on Thursday night. It's one of five new shows on the network's hit-stacked prime-time TV schedule. ABC, NBC and Fox are each trying out about a dozen programs this fall. The low program turnover at CBS is one reason its stock is up almost 46 percent this year

Status as the No. 1 network ensures strong advertising revenue. It also provides leverage to win fee disputes with pay TV distributors, like Time Warner Cable — which largely relented to CBS's terms after a monthlong blackout in several major cities in early September.

CBS has estimated fees from distributors will reach $1 billion by 2017, but investors have latched onto CEO Les Moonves' comments this month that the goal is "probably very conservative" and may easily be exceeded as existing deals are renewed in 2015 and 2016.

Those fees, plus the looming conversion of its U.S. outdoor billboard business into a real estate investment trust, are expected to generate billions in revenue that the company is expected to use to buy back shares.

Last week, Evercore financial analyst Alan Gould estimated CBS could reduce its outstanding shares by 34 percent by 2015, prompting him to lift his price target to $65 from $55.

Associated Press
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