NEW YORK (Reuters) – More than two months before CBS Corp and Viacom Inc succeeded at a third attempt to recombine, controlling shareholder Shari Redstone had already decided the new company needed to get bigger.
“We would want to look at something after that to … develop more scale as we move forward,” Redstone said at The Information’s Women in Tech, Media and Finance conference in June.
Audience - Executives - Times - Square - Rise
To the audience of executives in the Times Square high rise overlooking the storied Paramount building, it was clear that her ambitions went well beyond the hard-won reunion of the two companies her father, Sumner Redstone, put together and then pulled apart 13 years ago during a very different era in media.
She has considered a variety of options that include a sale to a larger company or acquisitions that fall into two categories represented by Sony Entertainment and Discovery, people familiar with her thinking said.
Portfolio - Companies - CBS - Television - Network
Even with the combined portfolio of companies that include the CBS television network, CBS News, Showtime cable network and book publisher Simon & Schuster with MTV, Paramount studios and Nickelodeon, the new company will lack the firepower required to take on the likes of Walt Disney Co and Netflix Inc , Redstone believed.
By next year, the battle waged by big tech and the last of the remaining media giants will get bloodier when Disney, AT&T Inc and Comcast’s NBCUniversal join Netflix, Amazon.com Inc and Apple Inc in the streaming video war for consumer wallets.
CBS - Viacom - Market - Capitalization - Disney
Taken together CBS and Viacom’s market capitalization of about $30 billion is dwarfed by Disney’s $247 billion and Netflix’s $137 billion.
Viacom, CBS, Redstone’s National Amusements, Sony and Discovery declined to comment.
Purchase - Discovery - Inc - Network - Cable
A purchase of Discovery Inc would give it a vast network of popular cable networks and libraries of unscripted shows including the Discovery Channel, Animal Planet, the Food...
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