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New York CBS Television and Broadcasting Group and Viacom announced on Tuesday that they have reached an agreement to merge their empires, the latest big deal in the rapidly changing media and entertainment market in the United States, where investors are only the language of alliances and mergers.
The two entities will be reunited, previously under the same company until dismantled in 2006 by Somer Redstone. The agreement ends years of failed merger between the two companies.
Viacom is valued at around $ 12 billion, while shares of the CBS group have risen to nearly $ 18 billion.
The new entity will generate revenues of more than $ 28 billion, thanks to the brand's popularity in the US and global media market, with nearly 22% of US viewers watching CBS and Viacom.
The new entity will also include the most-watched US television network, with Paramount movie producer and pay TV channels such as MTV, Comedy Central, Showtime and Nickelodeon.
The two companies said that the merger would allow them to increase their investment in entertainment and their global reach through broadcast networks in Britain, Argentina and Australia and a content in 45 languages.
22% of US viewers watch CBS and Viacom
"I am very excited to see these two big companies merge to realize the tremendous power of their merger," said Shari Redstone, who will lead the new Viacom CBS group.
"My father once said that" the content belonged to me "and that it is obvious today, she said," We will create a global media organization that is complete and well positioned to grow. " in a rapidly changing sector. " Under this agreement, the current shareholders of CBS will own 61% of the company, while the shareholders of Viacom will hold 39%.
CBS is one of the most widespread American media networks, with the three most powerful media empires of the United States, ABC, the National Broadcasting Corporation and Fox. It provides a variety of specialized and public information services, and some of its programs deal with local American affairs, while others acquire widespread international ownership, including political and sports programs.
The company is recognized as one of the world's leading media companies, relying on high quality standards in coverage and outreach programs, and providing media support for community support and service announcements. public.
Both groups discussed the merger for the last time more than a year ago. The two companies now plan to reduce new expenses by $ 500 million a year after the merger agreement is reached, after Viacom has reduced its operations by about $ 300 million.
In 2017, CBC was able to fully acquire the Australian news channel Ten and the Australian terrestrial channel Eleven.
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