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CBS Corporation (CBS - Analyst Report) extended its current share repurchase authorization to a total of $6 billion as the company enhanced the share repurchase program by an additional $5.1 billion.

Since the inception of the share repurchase plan in Jan 2011, the company bought back $3.75 billion worth of shares. Alongside, CBS Corporation announced a quarterly dividend of 12 cents a share to be paid on Oct 1, 2013, to shareholders of record as of Sep 10.

CBS Corporation has been actively managing its cash flow by generating healthy free cash, making prudent capital investments and enhancing shareholders’ return.  Moreover, the company is focused on lowering its dependency on advertising and is laying more emphasis on increasing subscription based revenue channels.

Earlier it announced that Platinum Equity has made an offer to buy assets of its CBS Outdoor International business for about $225 million. Moreover, the company decided to convert its CBS Outdoor operations in North America and South America into a real estate investment trust (“REIT”) and divest its Outdoor businesses in Europe and Asia.

Alongside, CBS Corporation further strengthened its ties with Netflix, Inc. (NFLX - Analyst Report) by extending its multiyear streaming video deal for select library content. Moreover, it entered into a deal with Amazon.com Inc. (AMZN - Analyst Report). These measures facilitate CBS in monetizing its content.

The company also acquired the remaining 50% stake in TV Guide Digital, including the TVGuide.com and TV Guide Mobile properties from Lions Gate Entertainment Corp. (LGF - Analyst Report). The addition of TVGuide.com to CBS’ impressive portfolio is believed to be a major boost for the company’s digital business as both TVGuide.com and TV Guide Mobile enjoy a strong audience in the lucrative TV information category.

We expect the company to benefit from reverse compensation from affiliates, strong demand of its content, digital distribution, syndication sales and retransmission consent.

CBS currently holds a Zacks Rank #2 (Buy).

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