US media companies Viacom and CBS have confirmed plans to re-merge. After separating in 2006, they have decided to form one company again, in order to achieve the scale needed to compete in the changing TV and video market. The merger is expected to accelerate their direct-to-consumer video strategy as well as beef up their production budget and portfolio available for third-party distributors.
Together the two companies generate around USD 28 billion in annual sales from brands such as CBS, Paramount, Comedy Central, Nickelodeon and MTV and Showtime. They are estimated to have an over 20 percent share of the US TV audience after the merger.
The all-stock deal will see CBS shareholders own 61 percent of the new company and Viacom shareholders 39 percent. Viacom's CEO Bob Bakish will head the new group, while CBS President Joe Ianniello will become CBS CEO. The companies expect around USD 500 million in annual synergies from the merger within 1-2 years of closing.
The deal is expected to be completed by the end of 2019.
