Details and timetable yet to come but Viacom’s board has agreed unanimously (there’s a shock) to Chairman Sumner Redstone’s proposal to split the baby in two in an effort to unlock Viacom’s value. The move splits the cable properties and the various Paramount divisions.
– The spin-off, dubbed CBS Corporation, will be led by Les Moonves and includes the CBS and UPN broadcast networks, Viacom Television Stations Group, Infinity Broadcasting, Viacom Outdoor, the CBS, Paramount and King World television production operations, as well as Showtime, Simon & Schuster and Paramount Parks. (CBS Digital isn’t mentioned explicitly but should be included.)
– The MTV Networks (MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, CMT: Country Music Television, Spike TV, TV Land, etc.) stay with Viacom Inc., which will be led by Tom Freston; ditto for BET, Paramount Pictures, Paramount Home Entertainment and Famous Music.
During the same meeting, Redstone’s daughter Shari was elected non-executive vice-chairman.
It’s much too soon to tell what kind of impact this will have on the various digital media and entertainment properties. The reconstituted Viacom gets what is now perceived as the most valuable internet and mobile asset: The MTV Networks.
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