CBS Announces $2-Billion Stock Buyback Plan : Television: The network will buy up to 10.5 million shares. It also reports a $55-million loss from baseball.

CBS Inc. today announced an offer to buy back $2 billion of its own stock and disclosed that it lost $55 million from its coverage of major league baseball this year.

The company said it would repurchase up to 10.5 million shares of its common stock at $190 per share, a significant premium over recent prices.

CBS stock has been hit hard recently by the network’s disclosure that it would report a loss for the fourth quarter and lower earnings in 1991. The loss would be its first for any quarter, excluding a restated loss in the fourth quarter of 1986. CBS has been hit hard by losses on sports programming and weakening ad revenue.

As part of the buyback, CBS said the estate of its late founder, William Paley, which controls an 8% stake, and Loews Corp., the company controlled by CBS President Laurence A. Tisch, which holds a 24.9% interest in CBS, would tender their shares.

While a portion of their stakes would be repurchased, their relative holdings of CBS common stock would not change under the proposal. The estate has been negotiating with CBS to sell the shares to pay tax obligations.

The announcement boosted the price of CBS stock, which climbed $5.12 1/2 to $175 in heavy late morning trading on the New York Stock Exchange. The stock recently traded below $160 a share.

“This offer will provide CBS shareholders with the opportunity to receive a premium over recent market prices of CBS shares for a significant portion of their shares while retaining a substantial equity investment in the company,” Tisch, who is also chief executive of CBS, said in a statement.

Tisch said that after the buyback, CBS still will have $800 million in cash and securities to finance current operations.

The statement also said that “in light of the repurchase of shares and the outlook for 1991” CBS expected to reduce its common stock quarterly dividend below the current $1.10 a share.

CBS for the first time disclosed an after-tax operating loss of $55 million in the 1990 fourth quarter and the year from its expensive contract for baseball programming. The network was hurt by weak advertising and the Cincinnati Reds’ four-game sweep over the Oakland Athletics.

CBS also said it would take a $115-million charge against fourth-quarter earnings to pay for anticipated losses over the course of its four-year, $1.06-billion major league baseball contract.

CBS last month announced that it would lose money for the October-December quarter. The network earned $60.1 million in the same 1989 period.