- Title: CBS, Viacom reunite with plans for bigger role in streaming TV wars
- Date: 14th August 2019
- Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS OF VIACOM BUILDING VARIOUS OF CBS BUILDING VIACOM SIGN ENTRANCE TO VIACOM BUILDING VARIOUS OF CBS BROADCAST CENTER 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: 28th August 2019 11:02
- Keywords: Shari Redstone CBS MTV ViacomCBS Inc media modul Nickelodeon television Merger billionare Sumner Redstone Viacom media streaming services
- 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: LVA001AS6V3BH
- Aspect Ratio: 16:9
- Story Text: CBS Corp. and Viacom Inc. have reached a deal to reunite media mogul Sumner Redstone's U.S. entertainment empire, betting that a larger company will be able to compete and partner better in a media industry dominated by giants.
The new company will be named ViacomCBS Inc., although CBS shareholders will own 61% and Viacom shareholders will own 39%.
The merger 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 3,600 film titles. Annually, it is estimated to generate about $28 billion in revenue.
It creates a company with roughly a $30 billion market value, which is still small compared with rivals including Netflix Inc., at $136 billion, ABC network owner Walt Disney Co., at $245 billion, and NBC owner Comcast Corp. at $193 billion.
The merging companies are controlled by National Amusements Inc., the holding company owned by billionaire Sumner Redstone and his daughter, Shari.
The third attempt at a merger since 2016 is a decisive win for Shari Redstone, whose father built the companies through a series of mergers and then broke them apart 13 years ago.
Previous merger talks had failed because of clashes between executives over divvying up top jobs and the companies' relative valuation.
The recombination comes amid an increasingly competitive media landscape dominated by Disney and Netflix, prompting Redstone to pursue a merger.
Viacom Chief Executive Bob Bakish will be the president and CEO of the combined company. Joe Ianniello, interim CEO of CBS, will be named chairman and CEO of CBS, which will exclude the Showtime cable network and book publisher Simon & Schuster.
(Production Credit: Kristian Brunse) - Copyright Holder: FILE REUTERS (CAN SELL)
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