CBS, Viacom reunite with plans for bigger role in streaming TV wars

By mayor

August 14, 2019

By Kenneth Li

(Reuters) – CBS Corp and Viacom Inc have reached a deal to reunite media mogul Sumner Redstone’s U.S. entertainment empire, betting that a larger company will be able to compete and partner better in a media industry dominated by giants.

The new company will be named ViacomCBS Inc, although CBS shareholders will own 61% and Viacom shareholders will own 39%.

The merger will combine the CBS television network, CBS News, Showtime cable networks with MTV Networks, Nickelodeon, Comedy Central and the Paramount movie studios. Together, they will own more than 140,000 TV episodes and 3,600 film titles. Annually, it is estimated to generate about $28 billion in revenue.

It creates a company with roughly a $30 billion market value, which is still small compared with rivals including Netflix Inc , at $136 billion, ABC network owner Walt Disney Co , at $245 billion, and NBC owner Comcast Corp at $193 billion.

The merging companies are controlled by National Amusements Inc, the holding company owned by billionaire Sumner Redstone and his daughter, Shari.

“My father once said ‘content is king,’ and never has that been more true than today,” Shari Redstone said in a statement.

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Source:: One American News Network

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