On December 31, 2005, American mass media company Viacom split into two companies: the second CBS Corporation, its successor (the first being a short lived rename of Westinghouse Electric) which holds the namesake flagship channel Columbia Broadcasting System, CBS News, CBS Sports, Showtime Networks, UPN (Replaced by the CW, co-owned by TimeWarner), Smithsonian Channel, Channel 10, PopTV, Simon and Schuster, Infinity Broadcasting Corporation, Viacom Outdoor, and Paramount Television, and an entirely new Viacom which holds Paramount Pictures, Nickelodeon, Nick Jr., Noggin, Nicktoons, TEENick, Music Television, Black Entertainment Television, Video Hits One, Country Music Television, and later DreamWorks, respectively. It was first announced in March 2005. The companies are controlled under National Amusements' control because of a stagnating stock price. [1]
They would later re-merge into ViacomCBS, later Paramount Global.
1886 | Westinghouse Electric Corporation is founded as Westinghouse Electric & Manufacturing Company |
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1912 | Famous Players Film Company is founded |
1913 | Lasky Feature Play Company is founded |
1914 | Paramount Pictures is founded |
1916 | Famous Players and Lasky merge as Famous Players–Lasky and acquire Paramount |
1927 | Famous Players–Lasky renamed to Paramount Famous Lasky Corporation; CBS is founded with investment from Columbia Records |
1929 | Paramount acquires 49% of CBS |
1930 | Paramount Famous Lasky Corporation renamed to Paramount Publix Corporation |
1932 | Paramount sells back its shares of CBS |
1934 | Gulf+Western is founded as the Michigan Bumper Corporation |
1935 | Paramount Publix Corporation renamed to Paramount Pictures |
1936 | National Amusements is founded as Northeast Theater Corporation |
1938 | CBS acquires Columbia Records |
1950 | Desilu is founded and CBS distributes its television programs |
1952 | CBS creates the CBS Television Film Sales division |
1958 | CBS Television Film Sales renamed to CBS Films |
1966 | Gulf+Western acquires Paramount |
1967 | Gulf+Western acquires Desilu and renames it Paramount Television (now CBS Studios) |
1968 | CBS Films renamed to CBS Enterprises |
1970 | CBS Enterprises renamed to Viacom |
1971 | Viacom is spun off from CBS |
1987 | National Amusements acquires Viacom |
1988 | CBS sells Columbia Records to Sony |
1989 | Gulf+Western renamed to Paramount Communications |
1994 | Viacom acquires Paramount Communications |
1995 | Westinghouse acquires CBS |
1997 | Westinghouse renamed to CBS Corporation |
2000 | Viacom acquires UPN and CBS Corporation |
2005 | Viacom splits into second CBS Corporation and Viacom |
2006 | CBS Corporation shuts down UPN and replaces it with The CW |
2017 | CBS Corporation sells CBS Radio to Entercom (now Audacy) |
2019 | CBS Corporation and Viacom re-merge as ViacomCBS |
2022 | ViacomCBS renamed to Paramount Global |
2024 | Skydance Media and Paramount Global agree to merge |
In 1952, CBS formed CBS Television Film Sales, a division which handled syndication rights for CBS's library of network-owned television series. This division was renamed CBS Films in 1958, again renamed CBS Enterprises in January 1968, and finally renamed Viacom (an acronym of Video and Audio Communications) in 1970. In 1971, this syndication division was spun off amid new FCC rules forbidding television networks from owning syndication companies (these rules were eventually abolished completely in 1993). [2] In 1985, Viacom purchased MTV Networks and Showtime/The Movie Channel Inc. from Warner Communications and American Express. [3] In 1987, Viacom was acquired by theater operator company National Amusements. [4] In 1999, Viacom made its biggest acquisition to date by announcing plans to merge with its former parent CBS Corporation (the renamed Westinghouse Electric Corporation, which had merged with CBS in 1995). The merger was completed in 2000, resulting in CBS reuniting with its former syndication division.
After the departure of Mel Karmazin in 2004, [5] Sumner Redstone, who served as chairman and chief executive officer, decided to split the offices of president and chief operating officer between Moonves and Freston. [5] Redstone was set to retire in the near future, and a split was seen as a creative solution to the matter of replacing him. [5] It was also intended to provide alternative investments that would be more appealing to investors: one a high cash flow, lower growth company that could afford to pay a substantial dividend and the other a growing company that would have greater investment opportunities and therefore would not be expected to pay a dividend.
In March 2005, Viacom contemplated splitting the company into two publicly traded companies, amid issues of the stock price stagnating and clashing corporate cultures between the cable and broadcast divisions, which came to a head with the Super Bowl XXXVIII halftime show controversy a year previous with the MTV-produced show causing controversy for game broadcaster CBS.
On June 14, 2005, the Viacom board of directors approved the split of the company into two firms. [6] The CBS Corporation name would be revived for one of the companies, to be headed by longtime television executive (and Viacom co-president) Les Moonves, and would include the namesake television network CBS, UPN, Infinity Broadcasting Corporation, Viacom Outdoor, Showtime Networks, and Paramount Television.
The split was structured such that the second Viacom was spun off from the first Viacom, which was renamed CBS Corporation. In a sense, this was a repeat of the 1971 spin-off. However, in this case, CBS retained virtually all of the prior firm's broadcast television assets, including its various syndication companies.
CBS said: "In many ways, today's decision is a natural extension of the path we laid out in creating Viacom," Redstone said in a company-wide memo. "We are retaining the significant advantages we captured in the Paramount and CBS mergers and, at the same time, recognizing the need to adapt to a changing competitive environment." [7]
With the split, the two companies began trading on the New York Stock Exchange (NYSE) on January 3, 2006. Investors anticipated Viacom benefiting from the split, but instead, it dropped approximately 20 percent, while CBS Corporation rose 9 percent, that same year, Paramount Parks became a wholly-owned theme park unit of CBS Corporation. [8]
The second Viacom was created by Redstone and headed by Freston. It consisted of BET Networks, MTV Networks, and Paramount Pictures. [9] It started trading on January 3, 2006. [10]
Despite the split, both companies are controlled by National Amusements.
On August 13, 2019, CBS and Viacom officially announced their merger; the combined company was to be named ViacomCBS, with Shari Redstone serving as chair. [11] [12] [13] Upon the merger agreement, Viacom and CBS jointly announced that the transaction is expected to close by the end of 2019, pending regulatory and shareholder approvals. [13] The merger required approval by the Federal Trade Commission (FTC). [13]
On October 28, 2019, the merger was approved by National Amusements, which then announced the deal would close in early December; the recombined company trades its shares on Nasdaq under the symbols "VIAC" and "VIACA" after CBS Corporation delisted its shares on the New York Stock Exchange (NYSE). [14] [15]
The United Paramount Network (UPN) was an American broadcast television network that operated from 1995 to 2006. It was originally owned by Chris-Craft Industries' subsidiary, United Television. Viacom turned it into a joint venture in 1996 after acquiring a 50% stake in UPN, and subsequently purchased Chris-Craft's remaining stake in 2000. On December 31, 2005, UPN was kept by CBS Corporation, which was the new name for Viacom when it split into two separate companies. On January 24, 2006, CBS Corporation and Time Warner jointly announced that the companies would shut down UPN and competitor The WB to launch a new joint venture network later that year. UPN ceased broadcasting on September 15, 2006, with The WB following two days later. Select programs from both networks moved to the new network, The CW, when it launched on September 18, 2006.
The second phase of Viacom Inc., was an American multinational mass media and entertainment conglomerate with interests primarily in film and television. It was established on December 31, 2005, as one of two companies which succeeded the original Viacom, alongside the second CBS Corporation. The controlling shareholder of both companies was National Amusements, a theater company headed by businessman Sumner Redstone. The split was structured so that the original Viacom changed its name to CBS Corporation and spun out its cable and film interests as a new Viacom.
Sumner Murray Redstone was an American billionaire businessman and media magnate. He was the founder and chairman of the second incarnation of Viacom, chairman of CBS Corporation, and the majority owner and chairman of the National Amusements theater chain.
National Amusements, Inc. is an American privately owned movie theater operator and mass media holding company incorporated in Maryland and based in Norwood, Massachusetts.
Paramount Media Networks is an American mass media division of Paramount Global that oversees the operations of its television channels and online brands. The division was originally founded as MTV Networks in 1984, named after the MTV cable network. It would be known under this name until 2011; when it would be thereafter known as Viacom Media Networks until 2019; and ViacomCBS Domestic Media Networks until 2022.
Flix is an American premium cable and satellite television network owned by Showtime Networks, a subsidiary of Paramount Global operated through its Paramount Media Networks division. Its programming consists solely of theatrically released motion pictures released from the 1970s to the present day, interspersed with some films from the 1950s and 1960s.
The Movie Channel (TMC) is an American premium television network owned by Showtime Networks, a subsidiary of Paramount Global operated through its Paramount Media Networks division. The network's programming mainly features first-run theatrically released and independently produced motion pictures, and during promotional breaks between films, special behind-the-scenes features and movie trivia.
Thomas E. Freston is an American media proprietor, businessman, and financier.
CBS Studios, Inc. is an American television production company which is a subsidiary of the CBS Entertainment Group unit of Paramount Global. It was formed on January 17, 2006, by CBS Corporation as CBS Paramount (Network) Television, as a renaming of the original incarnation of the Paramount Television studio.
Melvin Alan "Mel" Karmazin is an American executive. He was the president of Infinity Broadcasting and eventually became the president and CEO of CBS television. From 2004–2012, he was the CEO of Sirius Radio. In October 2012, Karmazin announced that he would be stepping down on February 1, 2013. Upon his departure, John C. Malone took over Karmazin's role at SiriusXM.
The second incarnation of CBS Corporation was an American multinational media company with interests primarily in commercial broadcasting, publishing, and television production. It was formed on December 31, 2005, as the legal successor of the original Viacom, following the spin-off of the second incarnation of Viacom; both CBS Corporation and the second Viacom were controlled by National Amusements, a theater company owned by billionaire Sumner Redstone.
Infinity Broadcasting Corporation was a radio company that existed from 1972 until 2005. It was founded by Michael A. Wiener and Gerald Carrus. It became associated with popular radio personalities like Howard Stern, Opie and Anthony, Don Imus and Mike Francesa. Infinity merged with CBS Corporation in 1997 and later became part of Viacom in 2000, when CBS and Viacom merged, serving as the radio division of CBS. After the Viacom split in 2005, Infinity changed its name to CBS Radio; the company would later merge with Entercom, presently known as Audacy, Inc.
Paramount Global Content Distribution is the international television distribution arm of American media conglomerate, Paramount Global, originally established in 1962 as the international distribution division of Desilu Productions. With the sale of Desilu to Gulf+Western, then-owners of film studio Paramount Pictures, in 1968, the division evolved into Paramount's first foray into the international television industry in the 1970s.
CBS News and Stations is a division of the CBS Entertainment Group unit of Paramount Global that owns and operates a group of American television stations along with CBS News. As of January 2021, the division owns 28 stations: 14 are the core stations of the CBS television network, two are affiliates of The CW, eleven are independent stations, and one is a primary-channel affiliate of the digital subchannel network Start TV. It also maintains a half-interest in Start TV, which is co-owned with Weigel Broadcasting.
Black Entertainment Television LLC is a subsidiary of American media conglomerate Paramount Global under its CBS Entertainment unit. BET oversees television channels and premium services aimed at African Americans, including its namesake cable channel.
The original phase of Viacom Inc. was an American mass media and entertainment conglomerate based in New York City. It began as CBS Television Film Sales, the broadcast syndication division of the CBS television network in 1952; it was renamed CBS Films in 1958, renamed CBS Enterprises in 1968, renamed Viacom in 1970, and spun off into its own company in 1971. Viacom was a distributor of CBS television series throughout the 1970s and 1980s, and also distributed syndicated television programs. The company went under Sumner Redstone's control in 1987 through his cinema chain company National Amusements.
Paramount Global is an American multinational mass media and entertainment conglomerate controlled by National Amusements and headquartered at One Astor Plaza in Times Square, Midtown Manhattan. The company was formed on December 4, 2019, as ViacomCBS through the merger of the second incarnations of CBS Corporation and Viacom. The company took its current name on February 16, 2022.
The 2019 merger of CBS Corporation and Viacom was announced on August 13, 2019, and was completed on December 4, 2019. The merger of equals reunited CBS Corporation and Viacom into a single company known as ViacomCBS after their separation from the first incarnation of Viacom on December 31, 2005. Both companies were owned by the theater company National Amusements, which remains the owner of the merged entity.
The first incarnation of Paramount Television was operated as the television production division of the American film studio Paramount Pictures, until it changed its name to CBS Paramount Television on January 17, 2006.
In November 1985, Viacom acquired MTV for $326 million in cash and warrants. One-third of MTV was publicly owned; the rest was owned by Warner Communications and the American Express Company. At the same time, Viacom bought 50 percent of Showtime, the pay television service, that it did not already own for $184 million.