Mergin'

Viacom & CBS finally agree to a huge re-merger

Snacks / Tuesday, August 13, 2019

Distance makes the heart grow fonder... Or something like that. Take CBS and MTV/Nickelodeon-owner Viacom. The two media legends split 13 years ago — and then, like Ross and Rachel, they spent the past 3 years (slowly) flirting over whether to get back together. Now the deal has officially been reached, and these are the primetime numbers:

  • $28B: The combined revenue of the Brangelina-esque new "ViacomCBS."
  • 140K & 3.6K: The combined number of TV episodes and movies the new company will own.
  • 4.3B: The incredibly massive global reach of TV subscribers ViacomCBS claims to have.
  • 61% vs. 39%: When the deal likely closes at the end of the year, CBS shareholders get 61% of the new company, Viacom shareholders get 39%.

Family Matters... The Redstone family ran Viacom until 2006, when it made sense to split off CBS as a separate company. But now that YouTube, Netflix, and social networks are eating into both companies' profits, a re-merger seems prudent. Media heiress Shari Redstone wanted to reunite, but former CBS CEO Les Moonves was against it — now that he's been pushed out for alleged sexual assault, Shari gets her family reunion.

This all comes down to one word: streaming... CBS All Access was actually one of the 1st streaming networks, but never really took off. Consolidating Viacom and CBS' original content from Spongebob to Star Trek is respectable enough to entice cord-cutters — but Netflix and Amazon are already way bigger, and Disney just acquired Fox. Content remains king, and ViacomCBS is a smaller kingdom.

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