CBS + Viacom Large Merger with the Media Industry
CBS, one of America’s three terrestrial broadcasters, and Viacom, a giant media company, merge again in 13 years, creating a giant media conglomerate.
CBIs and Viacom agreed to re-merger on the 13th, and the two companies announced that they would be reborn as Viacom CIBs, with 61% of CSI shareholders and 39% of VIA shareholders. The consolidation is expected to be completed by the end of 2019, and should be approved by regulatory authorities such as the Federal Communications Commission and the Ministry of Justice once the merger agenda is passed at the shareholders’ meeting.
When Viacom, which has channels such as CVIS, MTV, Comedy Central, Nickelodeon, and Paramount Pictures, merges with the terrestrial broadcasting network, ‘Viacom CIB’s is a large amount of content including 140,000 television productions and 3600 movies. Will hold. With video streaming service firms like Netflix and Amazon Video gaining more control over the content market, the two companies expect the merger to gain an equal competitive edge in the market. In addition, joint ownership and use of movie studios and cave channel networks are expected to save $ 500 million a year. In addition, the merger will have operations in the UK, Argentina and Australia. Viacom was originally a separate company from CIBS, and both companies have merged and split. Recently, it was separated again in 2006 due to a 2005 management dispute. Shari Redstone, daughter of Sumner Redstone, founder of Viacom, has succeeded after three mergers since 2016. The previous merger attempt broke down with both disagreements over the position of chief executive officer and the company’s valuation. The merger negotiations progressed as the CBI’s chief executive Les Munbeth, who had braked the merger, resigned as a scandal during the Mitu Movement last year.
Shari, who led the merger, will be chairman of ViaCombs. Shari said, “My father said,” Content is king. “
CBS + Viacom Large Merger with the Media Industry - /10