CBS and Viacom have for over a year now been in on and off talks to once again merge according to a report from Fox Business. The two companies use to be one, but broke up into two companies in 2006, at the request of both boards. It is important to remember that both Viacom and CBS have the same controlling family: the Redstone family. Talks broke down last year, but since that happened the former CBS CEO has left and six board members have been replaced,
Now it looks like the Redstone family has cleared the way for a possible CBS and Viacom merger once again. Last year CPI reported that the Redstone family had dropped a condition to make Viacom’s current CEO the number 2 in control of the company after a merger. That reportedly cleared a major obstacle to the merger now with new CBS board members it once again looks like a merger may happen.
This push to make media companies like Viacom and CBS larger is not just about cord cutting. There is a growing number of content providers such as Netflix, Disney+, Hulu, and Amazon creating original programs enjoyed by cord cutters and cable subscribers alike. To help fight back from a shrinking viewership content, companies are hoping to grow their footprint through mergers like this one.