ViacomCBS

[TheBigA]

CBS & Viacom Might Remerge

This is an idea that's been discussed many times here. Originally Viacom was the stronger company. That's changed in the last year. The company's stock has lost a lot of value. Recently the media landscape has changed, with even more consolidation going on. Now Bloomberg News is reporting the largest stockholder of the two companies has revived the idea:

https://www.thewrap.com/viacom-cbs-seeking-merge-insiders-say/

 

[Y2kTheNewOldies]

This is an idea that's been discussed many times here. Originally Viacom was the stronger company. That's changed in the last year. The company's stock has lost a lot of value. Recently the media landscape has changed, with even more consolidation going on. Now Bloomberg News is reporting the largest stockholder of the two companies has revived the idea:

https://www.thewrap.com/viacom-cbs-seeking-merge-insiders-say/

Well its interesting that national amusements has brought this up again though. In the past I remember that CBS refused the deal with Viacom because it could damage CBS's stock value in the past though. Also Viacom's mismanagement was a factor for CBS to not join Viacom again. But that argument was at play before Entercom took over the former CBS radio stations like KNX, KCBS, WBBM, WINS and WCBS

 

[TheBigA]

The most valuable Viacom asset in this economy is Paramount Pictures. Moonves wants to buy a studio. So all they have to work out is a price. How many shares of Viacom do CBS stockholders get? If it's a good deal, then it won't hurt CBS stock.

 

[Y2kTheNewOldies]

Also at play here is that Viacom would have to shrink cable channels that are lower rated and possibly merge them with their higher rated channels or shut them down. Viacom would have to that if the CBS/ Viacom deal were to really come into play though. Also if this deal were to come into play then CBS all access can get rights to paramount movies.

 

[TheBigA]

Also at play here is that Viacom would have to shrink cable channels that are lower rated and possibly merge them with their higher rated channels or shut them down.

I think if you give the lower rated channels to Les Moonves, he'll come up with something good to put on them.

 

[PTBoardOp94]

Also at play here is that Viacom would have to shrink cable channels that are lower rated and possibly merge them with their higher rated channels or shut them down.

Why? There's no regulatory limit on the number of cable channels one company can own.

There is the possibility of shutting down channels for business reasons, but that is different than saying they "would have to".

 

[Y2kTheNewOldies]

Why? There's no regulatory limit on the number of cable channels one company can own.

There is the possibility of shutting down channels for business reasons, but that is different than saying they "would have to".

I meant for business reasons to shut down the lower rated Viacom owned channels.

 

[umfan]

I suspect there is no real interest by CBS in acquiring Viacom and that this story gets floated and floated again by Viacom insiders in the hopes that getting it into the news will somehow provide traction for a deal.

Viacom is basically a mess and will likely remain so as long as Sumner Redstone and his family manage the company.

 

[TheBigA]

I suspect there is no real interest by CBS in acquiring Viacom and that this story gets floated and floated again by Viacom insiders in the hopes that getting it into the news will somehow provide traction for a deal.

According to the article I linked, the story was floated by majority stockholder Shari Redstone. She owns enough shares of both companies to make it happen.

 

[Y2kTheNewOldies]

Why? There's no regulatory limit on the number of cable channels one company can own.

There is the possibility of shutting down channels for business reasons, but that is different than saying they "would have to".

That's true that there is no FCC requirements to shut down cable channels though. But given the trends I seen on various articles there's been talks over how will Viacom survive in the era of Netflix, Amazon Prime video, Youtube and Hulu. That's why I brought up shutting down cable channels for business reasons. CBS responded by going after Netflix and Hulu by marketing CBS All-Access to their audiences. Now that depends if the deal goes through will Viacom put its shows on All-Access that is remain to be seen.

 

[TheBigA]

Now that depends if the deal goes through will Viacom put its shows on All-Access that is remain to be seen.

Everyone is trying to fill their platform with content. That's why Disney is buying Fox. That's why this merger makes sense.

 

[Y2kTheNewOldies]

http://deadline.com/2018/01/lionsgate-talks-amazon-verizon-cbs-viacom-1202244991/

Here is an update.

 

[Y2kTheNewOldies]

Here is an Update on the rumored CBS/Viacom talks

https://www.cnbc.com/2018/01/18/shari-redstone-explores-adding-new-cbs-directors-wsj.html

Shari Redstone, a controlling shareholder of CBS, has discussed adding new directors to the CBS board as she renews her push to merge the company with Viacom, The Wall Street Journal reported on Wednesday.

Shari Redstone and Sumner Redstone, her ailing 94-year-old father, together control both CBS and Viacom Inc through their privately owned movie theater company, National Amusements Inc. The Redstones failed in an attempt to merge the two companies in 2016.

Shari Redstone, who is vice chair of the CBS board, has had exploratory conversations with CBS Chief Executive Leslie Moonves and directors about recombining the companies, sources have told Reuters.

While Moonves is receptive to a combination, he has some reservations, sources have told Reuters.

Spokesmen for CBS and Viacom declined to comment.

CBS is looking to replace several of its directors at its annual shareholders meeting in May, and Shari Redstone is gathering names of possible candidates, according to The Wall Street Journal.

Shari Redstone's push to revisit a CBS merger with Viacom has become more pressing in light of Walt Disney's planned acquisition of a majority of Twenty-First Century Fox's assets, the sources told Reuters.

A combined CBS, which owns cable networks including Showtime and The Movie Channel as well as the CBS TV Network and CBS TV Studios, and Viacom, whose businesses include Paramount Pictures, Nickelodeon Movies and MTV Films, would have more negotiating leverage with cable and satellite companies.

In addition, Shari Redstone does not want to wait for the verdict on the U.S. Department of Justice's lawsuit to block AT&T's $85 billion acquisition of Time Warner, which is set to go to trial in March, the sources told Reuters. The Justice Department is suing to block that deal on the grounds that it is anti-competitive.

If that deal were to fall through, it would mean both AT&T and Time Warner may look for other companies to combine with, sources have said.

Viacom's new CEO, Bob Bakish, has improved relations with distributors, found financing for Paramount Pictures after Chinese investors dropped out and shuffled programming.

Even so, Viacom's stock is trading around $32 a share, below the $35-$38.80 range it was trading at when it and CBS explored a merger in late 2016.

 

[TheBigA]

The thing that's hurt Viacom stock value is the same cord cutting that's hurting ESPN and other cable channels. Too much of Viacom is weighted in cable channels like MTV that have lost a lot of viewers due to lack of program development. They either need to diversify their holdings or remerge with CBS.

 

[Y2kTheNewOldies]

http://deadline.com/2018/01/lionsgate-stock-report-active-merger-talks-1202245381/

Update National Amusements the same investment group run by the Redstones thats rumored to merge CBS and Viacom together also has Lionsgate at play here for a possible deal. Note Verizon and Amazon are also rumored in the Lionsgate talks.

The jump followed Deadline’s exclusive report yesterday that the company is in active merger discussions with Amazon, Verizon and a potentially recombined Viacom-CBS.

Overall, major stock indices are down thus far today. It is worth noting, though, that some of the top gainers in the media sector are all of the aforementioned Lionsgate suitors — Verizon and Viacom are each up 2% and CBS has added 3% for the day. Amazon, whose entertainment activities generally don’t affect its stock, is up a fraction.

Shares in Lionsgate have climbed 20% since the start of November. On the film side, the company has had a strong few months, releasing Wonder at Thanksgiving, a family hit that has taken in more than $200 million worldwide. On the TV side, with Starz now in the fold and dozens of shows set up across linear and digital platforms, the operation continues to hum. The company’s fiscal second-quarter results beat Wall Street expectations, with total revenue coming in at $941 million.


One element of intrigue in any potential combination is the management team. Lionsgate’s top exec tandem of CEO John Feltheimer and vice chairman Michael Burns have run the company for the better part of two decades, guiding the indie outfit through the acquisitions of Artisan, Debmar-Mercury, Summit and Starz.

 

[TVCOOL]

If CBS merges with Viacom again look for trimming the fat(i.e. close down the multiple channels that are almost the same)

 

[TheBigA]

If CBS merges with Viacom again look for trimming the fat(i.e. close down the multiple channels that are almost the same)

Businesses don't care if they have multiple channels with the same content as long as they're profitable. This isn't a content decision, but a business decision.

Most of the Viacom channels have very good cable carriage, so you don't just close them down. You might sell them, since it is beachfront property. But you don't trim the fat by eliminating sources of revenue.

 

[Don CT]

If I'm Moonves I pair down the MTV Networks. Keep The Paramount Network, Comedy Central and the Nickelodeon properties and cut loose MTV, VH1, BET, and the other "music channels".

 

[TheBigA]

If I'm Moonves I pair down the MTV Networks. Keep The Paramount Network, Comedy Central and the Nickelodeon properties and cut loose MTV, VH1, BET, and the other "music channels".

I don't know about that. Paramount is still a channel looking for a concept and a hit. Nick is the cash cow for sure. All of the music channels have great basic cable carriage, except maybe MTV Live. None of the cable companies are looking to drop them, even though they're not as strong as they once were. I think the only thing that's missing is leadership.

 

[Don CT]

I don't know about that. Paramount is still a channel looking for a concept and a hit. Nick is the cash cow for sure. All of the music channels have great basic cable carriage, except maybe MTV Live. None of the cable companies are looking to drop them, even though they're not as strong as they once were. I think the only thing that's missing is leadership.

It looks like they want to turn Paramount into a FX type channel. More original series and programs. The only MTV channel I watch is LIVE, they actually have music programing! The others are just carbon copies of each other.