CBS and Viacom once part of the same family had faced multiple crest and troughs in order to be a merged entity. Finally, CBS and Viacom have come together. CBS will be buying Viacom in an all-stock transaction for the current valuation of $12 Billion.
This will make brands such as MTV, Nickelodeon, Comedy Central, CBS, Paramount Pictures and ShowTime to come together. The new company will be called ViacomCBS Inc. To merge into one decision comes after the nod of Media and Entertainment magnate Summer Redstone.
Looking forward to the role in the new entity, Viacom CEO Bob Bakish will be President and Chief Executive of the company. While Shari Redstone, the daughter of magnate will be the first Chairperson in Viacom’s history. This merger will consolidate its footprint in the streaming digital age.
The two NewYork based company parted their ways in 2006. After the decision to build an empire together, the merged entity holds a small share as compared to AT&T, Disney Inc, and Netflix. AT&T owns HBO, CNN, TBS, and the Warner Bros while Disney owns Fox business after buying it for $71 Billion.
Oxford reports learned that The Redstone Family will control 80% of the voting shares of the two companies and also CBS Shareholders 61% of the combined company. The new company will have hold of 22% in the traditional TV market.
In 1999 conference Ms. Redstone said “Viacom and CBS are natural partners … we are siblings.” and that time the Wall Street valued Viacom-CBS at $80 Billion. Over the years CBS managed to stay in the market but Viacom staggered its market value.
“The combined CBS-Viacom would have many positive attributes, from cost synergies to dramatically improved leverage with distributors for the Viacom networks,” Moody’s analysts wrote in a note. “It would also have a greater combined scale of content production, diversity, and distribution.”