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.............................. Viacom
Logo and Trademark..............................
Viacom (NYSE: VIA) (NYSE: VIAb), short for "Video & Audio Communications", is an American media conglomerate with various worldwide interests in cable and satellite television networks (MTV Networks and BET), and movie production and distribution (the Paramount Pictures and DreamWorks movie studios). Sumner Redstone is the Chairman and, through National Amusements, the majority shareholder.
The new Viacom is considered to be the "high-growth" side of the much larger former Viacom. The former Viacom was renamed CBS Corporation, from which this firm was split off on December 31, 2005. CBS, not Viacom, retains control of the over-the-air broadcasting, TV production, and publishing assets formerly owned by the larger company. However, National Amusements remains the common majority shareholder of both firms.
In March 2005, the prior Viacom (now known as CBS Corporation) announced plans of looking into splitting the company into two publicly traded companies. The company was not only dealing with a stagnating stock price, but also the rivalry between Leslie Moonves and Tom Freston, longtime heads of CBS and MTV Networks respectively.
After the departure of Mel Karmazin in 2004, Redstone, who served as Chairman and Chief Executive Officer, decided to split the offices of President and Chief Operating Officer between Moonves and Freston. Redstone was set to retire in the near future, and a split would be a creative solution to the matter of replacing him.
The split was approved by Viacom's board June 14, 2005, approved December 31, 2005, and effectively undid the Viacom/CBS merger of 1999. The original Viacom changed its name to CBS Corporation and is headed by Moonves. It now includes Viacom's "slow growth businesses", namely CBS, The CW (formerly The WB and UPN), CBS Radio, Simon & Schuster, CBS Outdoor, Showtime, CBS Records, CBS Paramount Television and most television production assets.
These, according to some analysts, were suffocating the growth of the MTV Networks cable businesses (the split was structured such that CBS Corporation is actually the company previously known as Viacom). At the time of the split, CBS Corporation was also given control of Paramount Parks. CBS sold Paramount Parks to amusement parks management company Cedar Fair, L.P. on June 30, 2006.
A new company, the present Viacom, was also spun-off and was headed by Freston. It is comprised of MTV Networks, BET Networks, Paramount's movie studio, and Paramount Pictures' home entertainment operations. These businesses are categorized as the high-growth businesses (MTV Networks and BET Networks in particular), and if they were split into a separate company, it could infuse new capital to allow for future acquisitions and expansion. Sumner Redstone still controls 71 percent of the voting stock of both companies and is the chairman of both companies.
In February, Viacom ordered leaked copyrighted video clips be taken off of the videosharing service YouTube due to claims of noncompensation for the violation of their own copyright. On February 21, Viacom publicly announced they would be offering free online access to their own material through Silicon Valley's distributor Joost thanks to a thorough content licensing deal.
On May 21, Viacom entered into a 50-50 joint venture with Indian media company Global Broadcast News to form Viacom-18 which will house Viacom's existing channels in India - MTV, VH1 and Nick as well as Network 18's Bollywood movie business. All future Viacom content for India and new ventures such as a Hindi entertainment channel and a Hindi movie channel would be housed in this JV.
The previous board of directors of Viacom were George Abrams, Vincent Erazo, David Andelman, Joseph Califano, Jr., William Cohen, Philippe Dauman, Alan Greenberg, Charles Phillips, Shari Redstone, Sumner Redstone, Frederic Salerno, William Schwartz, and Robert D. Walter.
Following the Viacom/CBS split, the Viacom board consisted of George Abrams, Philippe Dauman, Thomas E. Dooley, Tom Freston, Ellen V. Futter, Robert Kraft, Alan Greenberg, Charles Phillips, Sumner Redstone (Chairman), Shari Redstone (non-executive Vice-Chair), Frederic Salerno, and William Schwartz. As of September 5, 2006 Tom Freston has resigned from the company. He is replaced by Philippe P. Dauman.
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