- Title: CBS, Viacom reach deal to reunite Sumner Redstone's media empire
- Date: 13th August 2019
- Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VIACOM BUILDING EXTERIOR CBS BUILDING EXTERIOR LOS ANGELES, CALIFORNIA, UNITED STATES (FILE - MARCH 30, 2012) (REUTERS) BILLIONAIRE AND OWNER OF NATIONAL AMUSEMENTS, SUMNER REDSTONE SPEAKING DURING CEREMONY HONORING HIM WITH STAR ON THE HOLLYWOOD WALK OF FAME IN CONNECTION WITH THE 100TH ANNIVERSARY OF THE FOUNDING OF PARAMOUNT PICTURES
- Embargoed: 27th August 2019 17:48
- Keywords: CBS Viacom agreement in principle Sumner Redstone entertainment empire
- Location: NEW YORK, NEW YORK; LOS ANGELES, CALIFORNIA; AND SUN VALLEY, IDAHO, UNITED STATES
- City: NEW YORK, NEW YORK; LOS ANGELES, CALIFORNIA; AND SUN VALLEY, IDAHO, UNITED STATES
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA001AS1Y4JX
- Aspect Ratio: 16:9
- Story Text: CBS Corp and Viacom have reached a deal on Tuesday (August 13) to reunite media mogul Sumner Redstone's U.S. entertainment empire after 13 years apart.
The new company will be named ViacomCBS Inc. despite the fact that CBS shareholders will own 61% and Viacom shareholders will own 39%.
Viacom shareholders will receive 0.59625 CBS shares for each share they own, representing a slight premium to Viacom's closing price on Monday (August 12).
The merger creates a company with roughly $30-billion market value, which is still small compared to rivals including Netflix, at $136 billion, ABC network owner Walt Disney, at about $245 billion, and NBC owner Comcast at $193 billion.
It will combine the CBS television network, CBS News, Showtime cable networks with MTV Networks, Nickelodeon, Comedy Central and the Paramount movie studios. Together, they will own more than 140,000 TV episodes and more than 3,600 film titles. Annually, it is estimated to generate about $28 billion in revenue.
The two companies are controlled by National Amusements Inc., the holding company owned by billionaire Sumner Redstone and his daughter, Shari.
(Production: Aleksandra Michalska)
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