CBS and Viacom have entered into a definitive agreement to combine in an all-stock merger, as the media giants look to take on the likes of Disney, Netflix and Amazon.
The international deal will create a combined company with more than $28 billion in revenue, with a library of 140,000+ premium
TV episodes and 3,600+ film titles, as well as production capabilities across five continents.
The combined company will be a scale player globally, with leadership positions in markets across the U.S., Europe, Latin America and Asia.
In addition, the combined company will possess a portfolio of fast-growing direct-to-consumer platforms, including both subscription and ad-supported offerings.
It will also include a major Hollywood film studio, Paramount Pictures, which has been a producer and global distributor of filmed entertainment for more than a century and continues to be a global box office driver.
The combined company will possess a portfolio of consumer brands, including CBS, Showtime, Nickelodeon, MTV, BET, Comedy Central and Paramount Network.
In a statement regarding the merger, Viacom and CBS, which owns Network Ten in Australia, stated that it will continue to operate its international networks accordingly.
Bob Bakish, president and chief executive officer of Viacom, will take over leadership of the combined company.
“Today marks an important day for CBS and Viacom, as we unite our complementary assets and capabilities and become one of only a few companies with the breadth and depth of content and reach to shape the future of our industry," Bakish says.
"Our unique ability to produce premium and popular content for global audiences at scale – for our own platforms and for our partners around the world – will enable us to maximize our business for today, while positioning us to lead for years to come.
"As we look to the future, I couldn’t be more excited about the opportunities ahead for the combined company and all of our stakeholders – including consumers, the creative community, commercial partners, employees and, of course, our shareholders.”
The deal is expected to accelerate CBS and Viacom’s ability to deliver an "array of compelling content" to important and diverse audiences across both traditional and emerging platforms around the world.
The two companies also revealed a three point strategic plan behind the merger:
- Accelerate direct-to-consumer strategy. Together, the combined company will be positioned to accelerate and expand its direct-to-consumer strategy through its proven and diverse portfolio of both subscription and adsupported offerings. These include CBS All Access and Showtime.
- Enhance distribution and advertising opportunities. The breadth and depth of the combined company’s reach across both traditional and new platforms – including 22% of U.S. TV viewership – will drive important new distribution and advertising opportunities.
- Create a leading producer and licensor of premium content to third-party platforms globally. As one of the biggest premium content providers in the world, the combined company is positioned to deliver content to a diverse global customer base that includes MVPDs, broadcast and cable networks, subscription and adsupported streaming services, mobile providers and social platforms.
Joe Ianniello, president and acting CEO of CBS, will become chairman and CEO of CBS. Ianniello will oversee all CBS-branded assets in his new role.
“This merger brings an exciting new set of opportunities to both companies. At CBS, we have outstanding momentum right now – creatively and operationally – and Viacom’s portfolio will help accelerate that progress," Ianniello says.
"I look forward to all we will do together as we build on our ongoing success. And personally, I am pleased to remain focused on CBS’s top priority – continuing our transformation into a global, multiplatform, premium content company.”
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