The media giant, which is highly dependent on advertising sales, swings to a loss for the year. Analysts hadn't expected such a dramatic dividend cut, but several say the move makes sense.
Seeking to preserve cash amid the troubled economy and slowdown in advertising sales, CBS Corp. on Wednesday slashed its dividend payment to investors and reported a 52% drop in net income for the fourth quarter.
Like other media companies that own local TV stations, CBS has been hit hard by the recession, which has crippled two of its biggest buyers of commercial time -- carmakers and dealerships. Revenue to the company's radio and billboard divisions also sank.
