Reuters/Brendan McDermid/File Photo
- CBS and Viacom reached a deal on Tuesday to reunite the two companies after 13 years apart.
- The proposed deal, if completed, would create a media giant called ViacomCBS, Inc. with roughly $28 billion in revenue.
- Viacom CEO Bob Bakish would lead the combined company as president and CEO, and current CBS CEO Joe Ianniello would serve as CBS’ chairman and CEO.
- Shares of CBS and Viacom were flat during afternoon trading, when the deal was announced. The market previously reacted to reports that a deal announcement was imminent.
- Visit Business Insider’s homepage for more stories.
CBS and Viacom struck an all-stock deal on Tuesday to reunite the two companies, after 13 years apart, the companies announced on Tuesday.
The merger, if completed, would create a media giant, called ViacomCBS, Inc., with roughly $28 billion in revenue.
CBS brings its broadcast network, sports and news channels, premium-TV network Showtime, and streaming services like CBS All Access to the table, while Viacom has host of cable-TV channels including MTV, Comedy Central, Nickelodeon, and BET, as well as film studio Paramount Pictures and streaming services like the ad-supported Pluto TV.
Viacom CEO Bob Bakish would lead the combined company as president and CEO, and current CBS CEO Joe Ianniello would serve as CBS’ chairman and CEO, the companies said.
Shari Redstone, who shepherded in the deal, would be chair of the combined company, filling a seat that once belonged to her father, Sumner Redstone.
As part of the all-stock deal, CBS agreed to convert each share of Viacom stock, including Class A voting shares and Class B non-voting shares, into 0.59625 of respective CBS shares.
CBS and Viacom split back in 2006, and have been in talks on and off since at least 2016 to recombine as the media landscape became more competitive.
The deal gives ViacomCBS more assets to build out its streaming services, through subscriptions like CBS All Access and Showtime, and ad-supported services like Pluto TV, the companies said. The combination would also grow the company’s advertising portfolio, and beef up its production capabilities.
Shares of CBS were flat around $48.35 during afternoon trading, when the deal was announced. Viacom shares were also flat around $28.71. The market previously reacted to reports that a deal announcement were imminent.
We spoke to Viacom employees about their hopes and fears following the merger, and what they expect to happen next, which includes more M&A.
Read our full report on Viacom insiders’ reactions to the merger on Business Insider Prime.
This story is developing…
NOW WATCH: Alexander Wang explains how to wear all black without looking boring
See Also:
- ‘Angst about more layoffs and consolidation’: Viacom insiders react to the CBS merger and share what they think will happen next
- The reason some people are left-handed could have nothing to do with the brain
- Cruise-ship workers say they have so much sex that it’s comparable to college
Source: Business Insider –