CBS is merging with Viacom after months of negotiations, reuniting the 2 corporations for the first time since they break up in 2005. The deal will improve CBS’s content material materials offering to prospects — a rising significance as a result of the streaming wars heat up.
The agency will most likely be rebranded to ViacomCBS, primarily based on a press launch, with Bob Bakish, the current CEO of Viacom, turning into CEO of every corporations under the merger. It will take months for the exact deal to close, with Joe Ianniello, showing CEO of CBS, set to report again to Bakish into 2021, according to Bloomberg. The merger was authorised in a unanimous vote by every boards. The switch means the company is sitting at a price of roughly $30 billion, in accordance to The Wall Street Journal.
“Today marks an important day for CBS and Viacom, as we unite our complementary assets and capabilities and become one of only a few companies with the breadth and depth of content and reach to shape the future of our industry,” Bakish talked about in a press launch. “Our unique ability to produce premium and popular content for global audiences at scale – for our own platforms and for our partners around the world – will enable us to maximize our business for today, while positioning us to lead for years to come.”
The merger has been in dialogue for pretty some time, nonetheless the ousting of longtime CBS CEO Leslie Moonves after a series of sexual misconduct allegations and the appointment of Shari Redstone as the controlling shareholder of every CBS and Viacom made it troublesome. A licensed settlement reached remaining yr sure Redstone to specific phrases — a minimum of two-thirds of the directors at CBS wanted to help the merger to make sure that the deal to be authorised, according to Variety.
The decision to combine is basically thought-about by merchants to be a sign that legacy media corporations like CBS are trying to develop their content material materials selections by merging with completely different corporations, like Viacom. This will allow CBS to compete with corporations like WarnerMedia and NBCUniversal, alongside Amazon, Apple, Disney, and Netflix as a result of the leisure agency pivots to streaming suppliers.
CBS already has a streaming service, CBS All Access, nonetheless having Viacom’s catalog of content material materials offers to the company’s basic selections. ViacomCBS now owns varied mega recognizable producers, along with Showtime, Nickelodeon, MTV, BET, Comedy Central, and Paramount Network, on prime of CBS. Together, ViacomCBS might be succesful to produce a library of higher than 140,000 TV episodes and higher than 3,600 movies. CBS could even buy Paramount Pictures as part of the merger. Having entry to varied important franchise, along with the Transformers assortment, could assist CBS improve its film selections by means of CBS All Access as a technique to compete with Disney and Netflix.
At the an identical time, Viacom has its private streaming service, Pluto TV, and is gearing as a lot as launch a standalone service from BET that may embrace distinctive content material materials from filmmaker Tyler Perry. It’s unclear how these will match into CBS’s basic streaming method inside the coming years. CBS could mix Viacom’s largest group selections, along with Nickelodeon, into CBS All Access as an answer to plump up its elementary streaming service and enchantment to a wider subscriber base.
The agency is web internet hosting a conference identify later within the current day the place further particulars about ViacomCBS’ future are anticipated to be launched. We will exchange the story if compulsory.