Will Channel Ten Be Sold After CBS Viacom Merger?
CBS the owners of Channel Ten in Australia is set to merge with US content and media Company Viacom due to changing consumer demands and the arrival of Disney +.
The companies said they expected about $500m cost savings from the tie-up, which brings together a movie studio, string of cable channels, and some of US TV’s most-watched shows, including 60 Minutes and The Big Bang Theory.
The new company will have $28bn in revenue and comprise brands like MTV, Comedy Central and Paramount Pictures, what’s not known is whether CBS’s investment will be retained or sold to the likes of News Corporation who have expressed interest in the local TV Channel in the past.
There have been at least three attempts to re-combine the companies, but all failed due to clashes between executives and investors over who got the top jobs as well as the valuations of the business.
The move comes amid an increasingly competitive landscape dominated by Netflix, Disney-Fox and other rivals look to expand into markets where both CBS and Viacom compete.
The new firm will be called ViacomCBS, would be controlled by National Amusements, the holding company owned by billionaire Sumner Redstone and his daughter, Shari.
Shari Redstone said: “My father once said, ‘content is king,’ and never has that been truer than today. We will establish a world-class, multiplatform media organisation that is well-positioned for growth in a rapidly transforming industry.”
Mr Redstone broke up CBS and Viacom 14 years ago. He believed it would unlock the value of Viacom, which was broadcasting some of TV’s most popular shows at a time when CBS was becoming less popular.