Viacom and CBS, a global media company, set up a special committee for merger, and the sense of crisis that the restructuring of the movie and broadcasting industry is progressing?

byAndre-Pierre du Plessis

It was announced that a special committee was set up for the merger of Viacom and CBS, which had been torn down once in 2016. However, it is not proceeding with the conclusion of merger, but this time it is suggested that it may end up badly.

Viacom Inc. Board Forms Special Committee to Evaluate Potential Combination with CBS Corporation | Viacom Newsroom
http://news.viacom.com/press-release/acquisition/viacom-inc-board-forms-special-committee-evaluate-potential-combination-cb


According to Viacom 's news release, a special committee was established at the board of directors meeting to explore the possibility of a merger with CBS.

In fact, Viacom and CBS were originally the same company, whose origins can be traced back to the radio station "United Independent Broadcasters" born in 1927. Arthur Judson who was a representative in the establishment of the company. Colombia gramophone, an affiliated company of Columbia Records, responded to the request for investment, and started broadcasting as a "Colombia gramophone broadcast" with a system of 15 affiliated stations.

However, mainly as a result of the communication fee becoming heavier as expenses, the Columbia gramophone set off the sponsor. Judson will sell the company to Isaac Levy & Leon Levy brothers and their partner Jerome Luchenheim who had operated Philadelphia affiliate · WCAU. Since the Levi brothers and Ruenchenheim were not interested in the day-to-day management of the company, he was 26 years old at the time as a president of a cigar company,William S. PaleyI set it up.

byHarris & amp; Ewing

Paley changed the company name to "Columbia Broadcasting System (CBS)" and asked La Palina, the family's manager, to sponsor. La Palina succeeds in doubling sales by radio CM. Paley bought 51% of the CBS shares owned by Rukhenheim and became an owner.

Under Paley, CBS will increase its affiliation to 114 and reach its heyday. Orson Wells produced H · G · Wells science fiction novel and made it a radio drama and broadcastI called a panic.It was also CBS that broadcasted the "Space War". We started broadcasting television in the 1940s.

byAlvim Correa

In that trend, CBS film made as a CBS program sales department in 1952 became independant in 1971, "Viacom". Viacom was acquired by National Amusements led by Sumner Redstone in 1986, then Paramount Pictures was affiliated in 1994, and in 1999 it finally acquired CBS of former parent company in 1999.

However, in 2005, viacom will be divided into companies as synergy is not seen, and Paramount Pictures and MTV etc. are separated into the current "viacom". The remaining viacom changed the company name to CBS Corporation.

Although both companies re-separated, viacom was sluggish. According to the intention of the Redstone family, we reintegrated in 2016 but it is frustrating because the CBS side opposed it.

If you look at the current picture of American movie and broadcasting industry by Recode, you can also see the intention of reintegrating viacom and CBS.

Here's the chart that explains why CBS and Viacom want to merge - Recode
https://www.recode.net/2018/1/18/16906042/cbs-viacom-merger-media-market-landscape-streaming

Netflix, a major streaming service, has already become larger than Time Warner and the 21st Century Fox alone, while Hulu, which also provides streaming services, is 30% from Comcast, 30% from Disney, 21 We receive 30% from Century Fox and 10% from Time Warner, but the scale is less than 10% of Netflix. In addition, Apple, Google, Amazon, Facebook, etc. with much more funds than Disney etc. are aiming for opportunities.