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A Reunified CBS and Viacom Will Lead to Deep Cuts, Sale of Some Cable Assets

CBS and Viacom first entered holy media matrimony back in 2000. The companies then went their separate ways 5 years later. Now 11 years after splitting, the companies are exploring rejoining creating what would be once again a media juggernaut. But putting the two companies back together won't come without some major sacrifices. There would obviously be some deep cuts in the workforce. However the cuts may lean heavier on the Viacom side as CBS would be the company taking over. There will probably be a sell off of non core cable assets making the new company leaner and refocused.  Whatever happens leading up to and after a merger, will all be up to the man with all the cards, CBS boss Les Moonves.
Moonves holds a strong hand. He has an out in his contract to leave if someone other than Sumner Redstone becomes his boss (which has already effectively happened). Shari Redstone can’t afford to alienate him; the results could be disastrous for both halves of the family empire. The general consensus on the Street is that no deal would yield some small upside for the stock price of CBS, but Viacom would fall further if it is rebuffed by a member of the family. That gives Moonves plenty of clout to dictate terms to the liking of the CBS board, but perhaps not enough to dissuade Shari from her mission of reunification.
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A Reunified CBS and Viacom Will Lead to Deep Cuts, Sale of Some Cable Assets Reviewed by Editor on Tuesday, October 04, 2016 Rating: 5
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