CBS to merge with Viacom in long-awaited US$11.7B deal

CBS-Viacom Reunification Expected Soon

CBS-Viacom Reunification Expected Soon

The all-stock deal, announced Tuesday, unites CBS's Showtime with Viacom's Nikelodeon and MTV, the makers of "SpongeBob SquarePants" and "Jersey Shore" respectively. This merger of CBS and Viacom could mean Kurtzman and his production team could have sizable influence if and when Star Trek gets back on the big screen - such as the growing possibility of a Quentin Tarantino Star Trek movie.

CBS Corp (CBS.N) and Viacom Inc (VIAB.O) have reached a deal to reunite media mogul Sumner Redstone's US entertainment empire after 13 years apart.

Now, Disney, Comcast's NBCUniversal and AT&T's WarnerMedia are jumping in with their own services as well to challenge Netflix, Amazon, Google and other tech companies encroaching into entertainment.

Redstone will be chairwoman of the combined company's board.

The companies say the combined company will create content not just for its own services, but for third-parties as well. In fact, the company is launching another streaming service called AT&T TV later this year.

CBS ($CBS) and Viacom ($VIA) announced they reached an agreement to merge, with Viacom shareholders receiving almost 0.6 CBS shares for each Viacom share they own.

The business has said it plans to accelerate its direct-to-consumer strategy. But Moonves was against the idea, as CBS was stronger and more profitable than Viacom. "Frankly, they may not be big enough still to compete with Disney and Netflix", he said, noting that "Netflix spends something like $15 billion on new product".

CBS and Viacom, both based in NY, were one entity until 2006, when the Redstone family decided investors would give them greater value as separate companies. Shari Redstone, daughter of media mogul Sumner Redstone, runs the holding company.

More news: Verizon to sell Tumblr to WordPress owner - Strategy
More news: Aaron Mooy signs for Brighton on year-long loan from Huddersfield
More news: Former Celtics guard Sebastian Telfair sentenced to 3.5 years for gun possession

"I am really excited to see these two great companies come together so that they can realize the incredible power of their combined assets", she said in a statement and will become the chair of ViacomCBS. "My father once said "content is king" and never has that been more true than today".

But over time, the two companies' fates were reversed. The changes paved the way for Tuesday's announcement.

CBS has been weighing its next moves since the ouster of longtime CEO Les Moonves a year ago. The breadth and depth of the combined company's reach across both traditional and new platforms - including 22% of U.S. TV viewership - is expected to drive important new distribution and advertising opportunities.

Management expects to generate $500 million a year in corporate cost savings within a year or two of the deal closing.

Under the deal's terms, Viacom shareholders would receive about a 0.6 share of CBS stock in exchange for 1 share of Viacom stock.

It is not immediately clear what the appetite for Starz will be after the merger when current Viacom CEO Bob Bakish will take over, one source familiar with the talks said.

Joe Ianniello, the president and acting chief executive officer of CBS Corp., will become chairman and CEO of CBS, overseeing all CBS-branded assets in his new role, the companies said.

Recommended News

  • Chandrayaan 2 Set To Reach Moon's Orbit By 20th August

    Chandrayaan 2 Set To Reach Moon's Orbit By 20th August

    All the systems of the spacecraft were inspected thoroughly and they were found to be in good condition functioning properly. In December, India will launch a small satellite launcher for the first time, the ISRO chief added.

    Watch the First Trailer for Greta Gerwig’s LITTLE WOMEN

    It's one of American literature's best-loved novels, and now Little Women is getting its eighth, yes eighth, film adaptation. And then there's Saoirse Ronan's Jo.
    Taylor Swift lets her hair down at boozy bar party

    Taylor Swift lets her hair down at boozy bar party

    She wrote on Tumblr: "My mother suffers with chronic kidney disease stage 3 and that's always something we're anxious about". The " You Need to Calm Down " singer seemed pretty tipsy, but she's has yet to comment on whether she actually was or not.
  • Date set for major court showdown over no-deal Brexit

    Date set for major court showdown over no-deal Brexit

    Mr Johnson yesterday reiterated his determination to leave the European Union on October 31 regardless of whether a compromise can be reached.
    Trump on Tariffs: 'Prices Not Up,' US 'Receiving a Gift from China'

    Trump on Tariffs: 'Prices Not Up,' US 'Receiving a Gift from China'

    In the first half of the year, Mexico was the top trading partner of the United States followed by Canada, as per media reports. Most of the levies are scheduled to kick in September 1.
    Liam Hemsworth opens up about his split from Miley Cyrus

    Liam Hemsworth opens up about his split from Miley Cyrus

    Cyrus' return to the studio comes after the star spent a little vacation time with Kaitlynn Carter in Italy. Miley Cyrus and Liam Hemsworth put on a rare display of PDA as they headed out in NYC for a Date night.
  • Open singles after loss on return

    Open singles after loss on return

    Former world No.1 Murray was broken in the opening game of the match and found himself within a point of a 3-0 deficit. When Richard drop-shotted me, there were a few times I didn't even run to the ball, didn't react to it.
    Markets rally after United States  delays tariffs on Chinese electronics and other imports

    Markets rally after United States delays tariffs on Chinese electronics and other imports

    The products include mobile phones, laptops, video game consoles, some toys, computer monitors, and certain footwear and clothing. Since Trump's August 1 tweets threatening the new tariffs, the USA benchmark S&P stock index has dropped more than 4% percent.
    Norway mosque shooting: Everything we know as shooting probed as terror act

    Norway mosque shooting: Everything we know as shooting probed as terror act

    Shortly after the attack, the body of his 17-year-old stepsister was found at a house in Baerum. Rafiq told the press on Sunday: "I'm thankful for all of the help and support I have received".
  • Young Man Who Wanted a Jaguar Pushes Brand New BMW Into River

    Young Man Who Wanted a Jaguar Pushes Brand New BMW Into River

    According to local media, the man's father is a wealthy landlord and the 22-year-old son already owned several SUVs. A young driver from India allegedly pushed the BMW he got from his parents into a river .
    Hunt for Team India head coach: Detailed look at the contenders

    Hunt for Team India head coach: Detailed look at the contenders

    Hesson, who stepped down from the post of New Zealand coach in 2018, recently also parted ways with IPL franchise Team Mumbai . Simmons guided Ireland to historic wins over England in the 2011 World Cup and West Indies and Zimbabwe in the 2015 edition.
    Ebola drugs found to increase survival rates

    Ebola drugs found to increase survival rates

    Farrar, stated, indicate scientists are getting closer to turning Ebola right into a "preventable and treatable" disease. On the other hand, approximately 53% of the patients on Remdesivir and almost 49% of the patients on ZMapp died.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.