The Redstone family media empire has been reunited after more than a decade apart.
CBS ($CBS) and Viacom ($VIA) announced they reached an agreement to merge, with Viacom shareholders receiving nearly 0.6 CBS shares for each Viacom share they own. That values Viacom at slightly less than $12 billion.
“Today marks an important day for CBS and Viacom, as we unite our complementary assets and capabilities and become one of only a few companies with the breadth and depth of content and reach to shape the future of our industry," said Bob Bakish, president and CEO of Viacom, who will hold both titles in the combined company.
The deal represents a coming together of two disparate arms of the vast media holdings owned and controlled by Sumner Redstone and his daughter, Shari — who will be the vice chair of the CBS and Viacom board of directors — under the umbrella of the privately held National Amusements. And it's another indication that, with streaming increasingly becoming the go-to choice for consumers, media conglomerates need to seriously consider combining in order to compete with behemoths like Netflix ($NFLX), AT&T ($T), and Disney ($DIS).
“I am really excited to see these two great companies come together so that they can realize the incredible power of their combined assets," said Shari Redstone. "My father once said ‘content is king,’ and never has that been more true than today.
It is possible that a combined CBS-Viacom will now seek to buy smaller media players to make itself even bigger. Recode reported that some of the names that could become acquisition targets include Discovery-Scripps and Starz-Lionsgate. It is unlikely that CBS-Viacom could itself become an acquisition target, given how potential acquirers almost all have their hands full with their own big purchases. And for tech giants like Apple ($AAPL) and Amazon ($AMZN) looking to gain more of a foothold in content and distribution, the regulatory environment may prove too hard to navigate.
A merger of CBS and Viacom brings brands like MTV, Nickelodeon, Paramount movie studio, and the revered CBS broadcast network under one roof for the first time since Redstone split it up in 2006. Bringing the two companies back together has long been a goal of Shari Redstone, who controls the company with Sumner, the aging family patriarch who has faced numerous health issues. A merger was adamantly opposed by Leslie Moonves, the former powerful chair of CBS who was brought down in a sexual harassment scandal last year. With Moonves and his allies on the CBS board out, Redstone moved aggressively to reignite merger discussions, according to reports.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
Unreal Snacks CEO Kevin McCarthy shares how dye-free candy is leading the sweets revolution—just in time for what could be a record-breaking Halloween 2025.
