CBS and VIACOM to merge assets

The American media group CBS will merge with industry companion Viacom, known from the film division Paramount Pictures and TV channels such as MTV and Nickelodeon. This deal, which has been in the pipeline for a long time, involves almost $ 12 billion – equivalent to € 10.7 billion.

CBS and Viacom also belonged together before, until CBS was put on its own feet more than ten years ago.

The driving force behind this was billionaire Sumner Redstone. She is now 96 years old and his daughter Shari now takes care of the family empire. It has long been committed to bringing the two companies closer together again.

Intensive negotiations have taken place several times in recent years. Each time a deal broke off. But last week the talks between the parties started to gain momentum. Together, the companies may stand stronger against the fierce competition from rivals such as Disney and Netflix.

CBS and Viacom handle the transaction entirely in shares. CBS shareholders get 61 percent of the combined company, the rest goes to the investors behind Viacom. Shari Redstone becomes chairman of the new concern and the daily management is in the hands of Viacom boss Bob Bakish.