CBS and Viacom have agreed to become ViacomCBS, as part of a deal to reunite the media companies after 13 years (CBS, VIA, VIAB)

shari redstone cbs viacom

  • CBS and Viacom reached a deal on Tuesday to reunite the two
    companies after 13 years apart.
  • The proposed deal, if completed, would create a media giant
    called ViacomCBS, Inc. with roughly $28 billion in revenue.
  • Viacom CEO Bob Bakish would lead the combined company as
    president and CEO, and current CBS CEO Joe Ianniello would serve as
    CBS’ chairman and CEO.
  • Shares of CBS and Viacom were flat during afternoon trading,
    when the deal was announced. The market previously reacted to
    reports that a deal announcement was imminent. 
  • Visit Business
    Insider’s homepage for more stories. 

CBS and Viacom struck an all-stock deal on Tuesday to reunite
the two companies, after 13 years apart, the companies announced on
Tuesday.

The merger, if completed, would create a media giant, called
ViacomCBS, Inc., with roughly $28 billion in revenue.

CBS brings its broadcast network, sports and news channels,
premium-TV network Showtime, and streaming services like CBS All
Access to the table, while Viacom has host of cable-TV channels
including MTV, Comedy Central, Nickelodeon, and BET, as well as
film studio Paramount Pictures and streaming services like the
ad-supported Pluto TV.

Viacom CEO Bob Bakish would lead the combined company as
president and CEO, and current CBS CEO Joe Ianniello would serve as
CBS’ chairman and CEO, the companies said.  

Shari Redstone, who
shepherded in the deal
, would be chair of the combined company,
filling a seat that once belonged to her father, Sumner
Redstone.

As part of the all-stock deal, CBS agreed to convert each share
of Viacom stock, including Class A voting shares and Class B
non-voting shares, into 0.59625 of respective CBS shares.

CBS and Viacom split back in 2006, and have been in talks on and
off since at least 2016 to recombine as the media landscape became
more competitive.

The deal gives ViacomCBS more assets to build out its streaming
services, through subscriptions like CBS All Access and Showtime,
and ad-supported services like Pluto TV, the companies said. The
combination would also grow the company’s advertising portfolio,
and beef up its production capabilities.

Shares of CBS were flat around $48.35 during afternoon trading,
when the deal was announced. Viacom shares were also flat around
$28.71. The market previously reacted to reports that a deal
announcement were imminent. 

We spoke to Viacom employees about their hopes and fears
following the merger, and what they expect to happen next, which
includes more M&A.

Read
our full report on Viacom insiders’ reactions to the merger on
Business Insider Prime.


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CBS and Viacom have agreed to become ViacomCBS, as part of a deal to reunite the media companies after 13 years (CBS, VIA, VIAB)