Wall St. calls for Viacom to reunite with CBS

[crackedscreen]

The Sumner Redstone-controlled company is facing renewed calls on Wall Street to reunite with its former sibling ahead of a high-stakes battle with Charlie Ergen’s Dish over programming fees.

Shares of Viacom are down nearly 9 percent since Jan. 14, when Citi analyst Jason Bazinet slashed his price target and cut his stock rating to “sell.” Viacom fell $1.62 to close at $66.45 Tuesday. Bazinet warned that Viacom’s earnings would take a big hit if Dish drops its cable channels, including Nickelodeon, Comedy Central and MTV. Without Dish’s 14 million subscribers, Viacom stands to lose some $700 million a year in affiliate fees and ad sales, he estimated.

Facing slowing pay-TV growth and contentious negotiations with distributors, Viacom should either reunite with CBS — and must-see programming like NFL games — or combine with another cable programmer like Discovery, he said.

http://nypost.com/2015/01/20/wall-street-calls-for-viacom-cbs-reunion-ahead-of-dish-battle/

 

[davidgheller47]

So if Viacom reunites with CBS instead of CBS merging with Time Warner I wonder with one of the big four networks Time Warner will merge? Comcast isn't interested in selling NBC, now Redstone is trying to reunite his companies that he splited back in 2005 and the Murdoch family won't give up Fox (which if ever they won't) most likely I see the 5 things happening as follows:

1. Viacom reunites with CBS.

2. CBS Television Distribution will be combined with Paramount Television (bringing shows like Dr. Phil, Judge Judy, Jeopardy!, Wheel of Fortune, etc.) under Paramount's wing and thus saving the Big Ticket Television name.

3. Time Warner will merge with ABC (bringing along its 8 TV stations, ABC News, CNN. ABC's sports properties and Turner's sports properties plus ABC's TV production unit, ABC Studios) all under Time Warner/ABC's and Warner Brothers wings.

4. Both ABC and Turner have a decent amount of sports properties to combine the two into one sports division for the ABC network that'll control the sports that airs on ABC, TNT, TruTV and TBS.

5. Disney will combine with Discovery Communications.

Total amount for all three media mergers:

Viacom/CBS: $48 Billion Dollars

Time Warner/ABC: $42 Billion dollars

Disney/Discovery: $35 Billion dollars

Total combined: $125 Billion dollars

 

[nathannah]

3. Time Warner will merge with ABC (bringing along its 8 TV stations, ABC News, CNN. ABC's sports properties and Turner's sports properties plus ABC's TV production unit, ABC Studios) all under Time Warner/ABC's and Warner Brothers wings.

4. Both ABC and Turner have a decent amount of sports properties to combine the two into one sports division for the ABC network that'll control the sports that airs on ABC, TNT, TruTV and TBS.

5. Disney will combine with Discovery Communications.

Disney giving up control of ESPN, which give it most of its dependable profits? I just can't see that happening. They'd probably spin off ABC more with a long-term deal which keeps ESPN's high-tier rights on ABC, but I could definitely see TW merging with someone at the very least.

CBS though...Les Moonves seems quite happy on his own without the ball and chain that is MTV Networks. He has the leverage to fight off a merger.

 

[TheBigA]

CBS though...Les Moonves seems quite happy on his own without the ball and chain that is MTV Networks. He has the leverage to fight off a merger.

It's not Les's call. Everyone works for someone, and Les ultimately works for Sumner Redstone. Sumner is the one who broke the company apart. It was a good decision when he made it, and it has increased the value of both companies. If I remember correctly Viacom was trading in the 30s when he split the company. Now CBS and Viacom have doubled in value. The bad news is that if they bring the two companies back together, one of the two Chairmen will have to work for the other. That's a political sticky wicket.

However, it hasn't passed my notice that Les is building a war chest to buy something. What it is, I don't know. But it won't be more radio stations, and probably won't be more traditional TV stations.

 

[davidgheller47]

Disney giving up control of ESPN, which give it most of its dependable profits? I just can't see that happening. They'd probably spin off ABC more with a long-term deal which keeps ESPN's high-tier rights on ABC, but I could definitely see TW merging with someone at the very least.

CBS though...Les Moonves seems quite happy on his own without the ball and chain that is MTV Networks. He has the leverage to fight off a merger.

I didn't say Disney would give up control of ESPN. all I said was either Disney is going to spin ABC off as a separate company or they'll sell it to Time Warner. I say Time Warner/ABC merger would be a better choice because (I know Rupert Murdoch has given up on trying to takeover TW) but if TW merge with ABC it'll make Time Warner toxic for Murdoch and Fox (as the FCC does not allow one person to control two of the big four major networks and two stations in the largest media markets). Merging with Discovery Communications will not keep the company in case Murdoch wants to try again at a bid to take over Time Warner (which at this point is highly, HIGHLY! Doubtful)