After a few failed attempts, CBS and Viacom finally have agreed to merge forming a new media giant the two companies announced on Tuesday (August 13).
The new company will consist of Comedy Central, MTV, Showtimes and Paramount Pictures as well as publisher Simon Schuster. The new conglomerate will reportedly have more than $28 billion in revenue. The deal reunites the two media entities who were at one time under the same umbrella until they were broken apart back in 2006 by Summer Redstone.
With the merger, ViacomCBS hopes to strengthen its ability to develop original programming to lure users to its premium channel. The companies also hope it will gain points with advertisers as well as appeal with international markets.
Speaking on the merger, ViacomCBS’ company chair Shari Redstone added:
“I am really excited to see these two great companies come together so that they can realize the incredible power of their combined assets. My father once said ‘content is king,’ and never has that been more true than today,” she said in a statement. “We will establish a world-class, multi-platform media organization that is well-positioned for growth in a rapidly transforming industry.”
Attempts by the two companies to merge failed due in large part to opposition from fo disgraced CBS chief executive Les Moonves. He was booted from the company back in September 2018 due to sexual harassment allegations.
As far as the numbers are concerned in the all-stock deal, CBS shareholders will own 61 percent of the company while Viacom shareholders will own 39 percent. The chief executive of Viacom, Bob Bakish will remain in his role, acting chief executive at CBS Joe Ianniello becomes chairman and CEO of CBS.
The deal follows Disney’s $71.3 billion acquisition 21st Century Fox, and AT&T dropping an $85 million bag for Time Warner.
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