CBS on Wallstrip…Not Playing Favorites

I am long CBS.

Check that…CBS is long Wallstrip . Yep, CBS has made the absolute genius decision to burn through a piece of their $1.8 billion in Cash Flow to buy/own Wallstrip .

Obviously the rumors have leaked – just check the stock price the last few weeks as CBS has added a Bazillion in market Capitalization. It reminds me of the action surrounding Google buying YouTube .

Why is CBS doing so well and can it continue?

Is it Jericho?

Better not be. I admit, I have never watched Jericho, but Jericho’s fans are pissed .

Is it IMUS?

Doubt it, he’s gone.

Is it Letterman?

Could be. I love him.

Could be Quincy Smith’s ‘Rolling Thunder’ strategy. According to Quincy:

ABC, NBC and Fox are all going in the other direction, trying to build up their own go-to portholes, but CBS is instead partnering with Web companies like Joost and Veoh to distribute content. “We can’t expect consumers to come to us,” Quincy Smith, the president of CBS Interactive, told the WSJ. “It’s arrogant for any media company to assume that.

In the end, it’s likely that old media is just having their day in the sun. Cash Flow matters and CBS has plenty of it. They are not swinging for the fences and are already leading the overall rating’s race .

Here is the price chart for CBS . It looks perfect. Brian agrees:

I am dipping my toes tomorrow. I like their syndication strategy and I am bullish on Quincy and the Interactive Division of course.

I am looking forward to making Wallstrip better every day. Congrats to the Wallstrip team for their hard work and our investors for their sheer genius. Awesome day.

Disclosure – Long CBS (today)