NEW YORK - After some false starts, CBS and Viacom announced Tuesday they will combine to form the latest media empire in a wave of mergers driven by the need for companies to reformulate themselves for the streaming era.
The new company will have more than $28 billion in revenue and comprise brands such as MTV, Comedy Central and Showtime, as well as Paramount Pictures and publisher Simon & Schuster.
The transaction will bolster their ability to develop original programming that can win subscribers to premium channel, score well with advertisers and resonate with audiences in international markets, the companies said.
The deal recombines 2 entities that were under the same corporate umbrella until they were broken apart in 2006 by Sumner Redstone, chairman emeritus of National Amusements, which holds almost 80 percent of both companies.
The deal comes on the heels of other large transactions in media, including Disney's $71.3 billion acquisition of key assets from Rupert Murdoch's 21st Century Fox, and AT&T's $85 billion purchase of Time Warner.
"I am really excited to see these 2 great companies come together so that they can realize the incredible power of their combined assets," said Shari Redstone, who will chair the new company, ViacomCBS.
"My father once said 'content is king,' and never has that been more true than today," she said in a statement. "We will establish a world-class, multi-platform media organization that is well-positioned for growth in a rapidly transforming industry."
The 2 companies failed in their earlier attempts to pull off a merger, due in part to opposition from former CBS chief executive Les Moonves, who was ousted in September 2018 amid sexual harassment allegations.
Joining forces will allow them to bolster investment in premium entertainment and boost their global reach, with broadcast networks in Britain, Argentina and Australia and content in 45 languages, the companies said in a press release. The deal also should result in $500 million in annual savings.
"The more scale you have, the more clout you have when go to in to negotiate with distributors or even with direct-to-consumers," said Tuna Amobi, analyst at CFRA Research. "It gives them a better chance to compete."
STREAMING ERA
The traditional media industry is battling to deal with the rise of Netflix, Hulu and other streaming ventures that erode the position of conventional cable packages and broadcasters unveil "over-the-top" options.
CBS itself has launched its "All Access" service which provides on-demand programming for $5.99 per month with limited commercial interruptions or $9.99 per month for ad-free service.
And Disney in November plans to launch a new "Disney+" service at a starting price of $6.99 monthly that offer its films and television shows as well as the library it acquired through the Fox deal.
Under the all-stock transaction in the latest tie-up, existing CBS shareholders will own 61 percent of the company, while Viacom shareholders will own 39 percent.
Bob Bakish, chief executive of Viacom, will assume that post in the newly-combined company, while Joe Ianniello, acting chief executive at CBS, will become chairman and CEO of CBS, overseeing CBS-branded assets.
Shares of Viacom fell 5.6 percent to $30.75, while CBS rose 1.4 percent to $48.70.
source: news.abs-cbn.com
SAN FRANCISCO -- US media group Viacom announced Tuesday a deal to buy free streaming television service Pluto TV for $340 million in cash to better compete as lifestyles shift to online entertainment.
Viacom properties include Comedy Central, MTV and Nickelodeon, as well as Paramount Pictures.
"Today marks an important step forward in Viacom's evolution," Viacom chief executive Bob Bakish said in a statement.
"As the video marketplace continues to segment, we see an opportunity to support the ecosystem in creating products at a broad range of price points, including free."
Viacom is optimistic about the ad-supported streaming television market, where it plans to work with Pluto TV and a range of partners, according to Bakish.
Acquiring Pluto TV will advance Viacom strategic priorities, including "expanding its presence across next-generation distribution platforms and growing its advanced advertising business," according to the New York-based media company.
Founded in 2013, Pluto TV streams more than 100 channels of ad-supported television on the internet.
The Los Angeles-based company boasts more than 12 million active monthly users, most of them using televisions connected to the internet.
Pluto streams content to screens through Roku, Amazon Fire TV, Android TV, Apple TV and Sony PlayStation video game consoles.
The media sector is being shaken up by technology companies such as Amazon, Netflix and YouTube that let people stream video on-demand rather that be tethered to costly cable or satellite services.
The competition for viewers has led to maneuvering in the sector, with AT&T buying Time Warner and Fox assets being acquired by Disney, which is launching a streaming service of its own.
source: news.abs-cbn.com
LOS ANGELES - "SpongeBob SquarePants" creator Stephen Hillenburg, who brought the zany cartoon marine underworld of Bikini Bottom to television, the movies and the stage, has died at the age of 57, the Nickelodeon television network said on Tuesday.
Hillenburg had said last year that he was suffering from the neurodegenerative disease ALS, also known as Lou Gehrig's disease. He died on Monday.
"We are incredibly saddened by the news that Steve Hillenburg has passed away following a battle with ALS," the network said in a statement. "He was a beloved friend and long-time creative partner to everyone at Nickelodeon, and our hearts go out to his entire family."
Hillenburg was a marine biology teacher in Southern California when he started creating sea creatures as teaching tools.
The first episode of "SpongeBob SquarePants," featuring the cheerful yellow sea sponge, who lived in an underwater pineapple, and his friends Mr. Krabs, Larry the Lobster, Patrick, and their Krusty Krab restaurant hangout, aired on US television in May 1999.
The series went on to win multiple awards, produced a series of spin-off books, 2 Hollywood movies, and a Broadway musical. The television series has aired in more than 200 nations and has been translated into more than 60 languages.
"Steve imbued SpongeBob SquarePants with a unique sense of humor and innocence that has brought joy to generations of kids and families everywhere," the Nickelodeon statement said.
"His utterly original characters and the world of Bikini Bottom will long stand as a reminder of the value of optimism, friendship and the limitless power of imagination."
Nickelodeon is a unit of Viacom.
source: news.abs-cbn.com
