Stock market quotes, forex, financial news, forex tools – money-investing.com

Viacom and CBS agreed to merge

 Breaking News
Viacom and CBS agreed to merge
August 15
13:00 2019

The largest media companies Viacom and CBS will merge. The procedure will occur by share exchanging. As a result, a company with the annual revenue of about $ 28 billion will be formed.

A joint press release said the new company would be called ViacomCBS. The newly formed giant will become the world’s leading producer of premium content. The scale and capabilities of the company will increase significantly, allowing it to become the market dominant.

We recall that in 2006 a media mogul Sumner Redstone split CBS and Viacom. Now his assets will merge. Thus, this will bring the following channels like MTV, Nickelodeon, Paramount and CBS together under the same roof.

The new company must compete with such giants as Walt Disney, Comcast, Netflix, etc.

The transaction will be conducted in such a way that the shareholders of Viacom will receive approximately 0.6 shares of CBS. Viacom is estimated at approximately $ 12 billion, which corresponds to its market value.

CBS owners will get about 60% of the new company, while Viacom owners are going to receive about 40%. The transaction was approved by the heads of both parties.

Shari Redstone (daughter of the media mogul) will become the Head of the Board of Directors at ViacomCBS.  Bob Bakish, the current Viacom CEO, will serve as CEO in the new company.

13 representatives of the current CBS and 4 officials from Viacom will become the members of the Board. Mr. Bakish as well as two representatives of National Amusements will be among them.

At the moment, the deal is awaiting regulatory approval. Its closure is planned for the end of this year.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment