Well said anurag..
If we see history, Viacom has suffered good loss at time when other companies were performing quite well. So, this means that they are not even in position to pay there interest on their debt. Lack of liquidity is eating their financial stability. So in such a case its good to payoff debt by selling assets and shares cos the company is caught in a vicious cycle where it is not able to generate much revenue to payoff interest. Otherwise there deficit will keep piling up and they will reach a position where they wont be able to do anything.
On the other hand, companies like Viacom who are in service sector, don't have much Fix Assets, rather have more of Intangible Assets and Goodwill (check balance sheet @ You are not allowed to view links.
). So, they wont be able to payoff debt by selling assets. And if they start selling of shares, prices will fall. Therefore a better option can be an acquisition or merger.
But in this time of recession no theory can be held perfect. So, best is to wait, watch & learn.