Redstone Firm Calls Off CBS, Viacom Merger Proposal 12 December 2016, by Mae Anderson

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Redstone firm calls off CBS, Viacom merger proposal 12 December 2016, by Mae Anderson

makes more sense for the companies to continue as separate entities.

Viacom, which owns the Paramount Pictures movie studio and pay TV channels such as Comedy Central, MTV, BET and others, has been struggling to improve its profit as Paramount has struggled to produce hits and cable viewership declines.

The company named Robert Bakish as acting president in late October and appointed him permanent president and CEO on Monday.

The appointment caps off a management saga that culminated earlier this year, when longtime Viacom In this Feb. 13, 2012, file photo, a CBS logo is displayed CEO Phillipe Dauman was pushed out following a on the exterior of CBS Scene Restaurant and Bar, at legal battle with media mogul Sumner Redstone's Gillette Stadium, in Foxborough, Mass. Media mogul daughter, Shari Redstone, over control of the Sumner Redstone's National Amusements is company. The fight ended with Shari Redstone as abandoning a proposal that CBS and Viacom reunite after a 10 year split. National Amusements, which owns a Viacom director and president of National most of the voting shares of the two companies, had Amusements, which has a controlling stake in CBS urged the companies to combine in September 2016. and Viacom. At the time Tom Dooley was named (AP Photo/Steven Senne, File) interim CEO, but he announced unexpectedly he was leaving in October and Bakish was then named acting CEO.

Media mogul Sumner Redstone's National Amusements is abandoning a proposal that CBS and Viacom reunite after a 10 year split.

The news comes as Viacom named acting CEO Bob Bakish as its permanent head.

National Amusements, which owns most of the voting shares of the two companies, had urged the companies to combine in September, saying that a tie-up would help them compete better as technology and the entertainment industry rapidly evolve.

Now, the company, run by Redstone and his This Aug. 3, 2011, file photo, shows the Viacom logo at daughter Shari, says that following management Viacom headquarters in New York. Media mogul Sumner changes at Viacom and strength at CBS, which Redstone's National Amusements is abandoning a proposal that CBS and Viacom reunite after a 10 year operates CBS, Showtime and other entities, it

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split. National Amusements, which owns most of the voting shares of the two companies, had urged the companies to combine in September 2016. (AP In this Oct. 1, 2012, file photo, Sumner Redstone attends Photo/Mark Lennihan, File) the premiere of "Seven Psychopaths" in Los Angeles. Redstone's National Amusements is abandoning a proposal that CBS and Viacom reunite after a 10 year split. National Amusements, which owns most of the Meanwhile, as more people cut the cable cord, voting shares of the two companies, had urged the choosing instead to stream TV shows or movies companies to combine in September 2016. (Photo by online at places like Netflix, Hulu, iTunes and Matt Sayles/Invision/AP, File) Amazon.com, CBS has found success under Les Moonves streaming its popular shows like "NCIS" and "The Big Bang Theory," as well as its stand- alone, streaming Showtime channel. © 2016 The Associated Press. All rights reserved.

There would have been cost savings if the companies combined, but strategically, the positives weren't as clear, said Instinet analyst Anthony DiClemente.

"This allows CBS to continue to operate in a very nimble and autonomous fashion," DiClemente said. "For Viacom, I think in terms of long term strategy, the verdict is still out."

Viacom said in a statement that it received the letter sent by National Amusements and will provide more updates later. CBS referred comment to National Amusements.

Viacom Inc. Class B shares fell $3.01, or 7.8 percent, to $35.61 in afternoon trading Monday. CBS Corp. Class B shares slipped 4 cents to $62.52.

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APA citation: Redstone firm calls off CBS, Viacom merger proposal (2016, December 12) retrieved 26 September 2021 from https://phys.org/news/2016-12-redstone-firm-cbs-viacom-merger.html

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