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Here Are All a Pros and Cons of a CBS-Viacom Merger

If CBS winds adult carrying a shotgun matrimony to Viacom, what would that meant for both media giants?

A partnership is in play after National Amusements, Inc. on Thursday due recombining a companies, that separate in 2005. NAI controls both entities by “supervoting” shares hold by a bum 93-year-old noble Sumner Redstone and his daugther, Shari.

But this organised matrimony would come with copiousness of headaches even before a honeymoon. Viacom has endured months of unpleasant boardroom turmoil, eventually booting a arch executive and other tip managers as a Redstone family jockeyed for control.

CBS Corp., for a part, is run by outspoken Leslie Moonves, who has finished it transparent he favors gripping a promote hulk as a standalone company, even yet he would be a expected claimant to run a joined companies.

A CBS orator wrote Thursday that a supervision had seen a NAI minute and would “take suitable movement to weigh what is in a best interest” of a association and a shareholders. So it’s protected to contend that CBS isn’t accurately fervent to rush into a comfortable welcome of Viacom.

It’s mocking that Viacom is seen as a weaker partner given it has a collection of once-hot wire brands like Comedy Central and MTV (and a film studio, Paramount, that has been stranded in final place in marketplace share among a vital studios given 2011). But CBS has doubled down on promote and boasts a most-watched network in a world. As doubtful as it might seem, wire needs assistance from broadcast.

So if a Redstones eventually attain in pulling their box — and given their tenure stakes, it looks expected they will be — what would that meant for shareholders, employees and a rest of a media world? Here are some of a upsides of doing a deal, along with a caveats that have media insiders buzzing:

1. “Substantial synergies.”

That’s a word NAI used in a Thursday minute touting a merger. In other words, a total companies would save so many income by expelling overlapping operations and augmenting potency that a matrimony would produce present benefits. Indeed, media analysts during MoffettNathanson estimated cost resources of “at least” $400 million.

But on a downside, that would expected meant layoffs for hundreds of employees. And “synergy” is a same buzzword that was used to sell a lot of media mergers from a Internet 1.0 epoch that didn’t vessel out, such as (cough) AOL Time Warner.

2. “Distribution protection.”

Or so a analysts call it. What that means is that CBS, due to must-carry supervision regulations, wields huge poke with multi-channel distributors. As consumers change some-more toward on-demand viewing, that poke matters some-more and more. If wire operators decide, for instance, to offer consumers “skinny bundle” packages that dump MTV, CBS could theoretically press for improved terms.

Theoretically is a pivotal word there, however. TV stays a hit-driven business, and what eventually succeeds are programs that people wish to see, not struggling networks that get strong-armed onto a wire menu.

3. The Moonves Factor.

Moonves is a many successful TV executive in a business, mixing a savvy clarity of mainstream tastes with a stubborn ability to follow by on vital imperatives. Just demeanour during how a network has ingeniously exploited resources like “NCIS” and “The Big Bang Theory.”

Some analysts trust that he could work his sorcery on vanishing Viacom brands like Comedy Central, that has been strike tough by a exits of Jon Stewart and Stephen Colbert.

The usually problem is that rejuvenating Viacom is a pursuit Moonves doesn’t seem to want. “We are doing unusually good on a possess with a possess assets,” he told an financier discussion progressing this month. Translation: I don’t unequivocally wish a gunk in your garage, Sumner.

Marci Ryvicker, an researcher for Wells Fargo Securities, understands Moonves’ reluctance. “We usually don’t see how any exec can come in and spin this around in a subsequent 12 months,” she wrote of Viacom in a note this week. Translation: Nobody wants this crud.

But here’s maybe a many critical indicate to remember: The Redstones control Viacom and CBS. And we know what they contend about possession. Ultimately, Shari and her father will get their way. The usually doubt is what a media landscape will demeanour like once they’re done.

Happy Birthday, Sumner Redstone! We Got You a Timeline of Your Crazy Life (Photos)

  • Sumner Redstone

    May 27, 1923: Sumner Murray Rothstein (later Redstone; pictured) is innate in Boston, and a media universe will never be a same.


  • Sumner Redstone

    1979: Redstone (pictured) is badly burnt in a hotel fire set by a discontented train boy.

    Read some-more about a unimaginable sum here.



  • Viacom's trademark outward a headquarters

    1987: Redstone performs antagonistic takeover of media association Viacom, a batch that he’d been gobbling up.

    That same VIAB batch has had a severe 22 months newly — review all about that here.


  • Paramount Logo

    1993: Redstone’s Viacom acquires film studio Paramount Pictures.

    This April, a aging superficial publicly settled that he doesn’t wish to sell a minority interest in that company. The Viacom Board of Directors, on a other hand, is pulling for that to occur as early as end-of-June.

    Paramount Pictures

  • Viacom CBS logos

    2000: Viacom and a supposed Tiffany Network, CBS, merge. It wouldn’t last.

    Just 5 years later, Viacom and CBS split, yet a dual publicly traded companies are still underneath a same powerful — Redstone’s National Amusements, Inc. still controls 80 percent of both companies today.


  • viacom sumner redstone shari redstone philippe dauman

    2006: Shortly after a spinning off, Sumner began feuding publicly with daughter Shari (the span graphic together here) over her purpose within a companies.

    On Sep 5 of that year, Sumner Redstone taps authorised warn Philippe Dauman to lead Viacom. Shari Redstone and Dauman clearly haven’t gotten along given then, yet she’s apparently remade a attribute with her bum father.


  • manuela herzer sumner redstone

    October 2015: Sumner Redstone’s longtime partner Manuela Herzer (pictured) was booted as his medical proxy, losing her large estate in a process.

    Dauman became Sumner Redstone’s halt proxy, before Shari Redstone re-ingratiated herself and took a purpose over.

    Herzer would sue in May 2016 to get behind in a middle round — or during slightest retrieve her mark in Sumner Redstone’s will — yet was denied by a judge. Sumner’s mental competency was hold adult during a same hearing, yet it wouldn’t be a final time an counter asks someone sitting on a dais to double-check that.


  • Sumner Redstone in 2012

    Jan 20, 2016: Activist financier SpringOwl calls for a Sumner Redstone (pictured, from 2012) to step down as Viacom and CBS chairman. The 92-year-old has had problems with his debate for years, and hasn’t been means to so many as broach a pre-written matter during quarterly financier calls.


  • moonves-redstone-dauman

    February 2016: CBS President and CEO Leslie Moonves’ replaces Sumner Redstone as a promote channel’s authority on a third of a month. Sumner Redstone takes on a pretension of “Chairman Emeritus.”

    A day later, Philippe Dauman (pictured, right, with Moonves, left, and Redstone, center) finished a same sell with Sumner Redstone during Viacom.


  • sumner redstone lacma

    May 18, 2016: The Viacom Board of Directors votes to stop profitable Sumner Redstone (pictured during LACMA), a viewed slap in a face by his authorised counsel.

    If we got a vehement answer from someone during Viacom, however, they’d indicate out that a billionaire has copiousness of income and does accurately 0 work, so he’s usually fine. Plus, a company’s been perplexing to cut costs where it can.


  • Shari Redstone Viacom Sumner Trust

    May 20, 2016: Sumner Redstone (pictured here with daughter Shari) removes Philippe Dauman and George Abrams as curators in a Sumner M. Redstone Trust, and as house members of his family business, National Amusements, Inc.

    This kicked off many open fighting between a dual far-apart sides. The nastiest indictment came from Viacom and Dauman, who indicted Shari Redstone of “manipulating” her father’s signature.

    They’re not a usually people who trust a daughter is pulling daddy’s puppet-strings.


  • Philippe Dauman George Abrams

    May 23, 2016: Philippe Dauman (pictured) and George Abrams (insert) sue in a Massachusetts justice to overrule their oustings.

    Across a country, Sumner Redstone’s attorneys ask a Los Angeles Court to attest his competency, that would attest a removals of Dauman and Abrams.


  • Sumner Redstone

    May 24, 2016: Sumner Redstone (pictured) replaces Philippe Dauman and George Abrams with his granddaughter Kimberlee Ostheimer and a span of family friends, Tad Jankowski and Jill Krutick.

    To entirely glow Dauman from Viacom, Redstone will need his Board of Directors’ capitulation — or he can usually reinstate them, that is entirely within his power.


1 of 13

93 years immature Friday, a CBS and Viacom authority emeritus has survived a fire, family play and some-more than his satisfactory share of nonagenarian open chagrin — yet he’s still got billions to uncover for it

May 27, 1923: Sumner Murray Rothstein (later Redstone; pictured) is innate in Boston, and a media universe will never be a same.

Article source: http://www.thewrap.com/cbs-viacom-merger-pros-cons-les-moonves-sumner-redstone-national-amusements/