Viacom

Viacom (short for Video & Audio Communications) {{nyse|VIA}}, {{nyse|VIAB}} is an international media conglomerate. The companies owned by Viacom touch virtually every major segment of the media industry. 81-year-old Sumner Redstone is Chairman of the Board and Chief Executive Officer. The offices of President and Chief Operating Officer are jointly held by 58-year-old Tom Freston and 53-year-old Leslie Moonves, who had headed the MTV Networks and CBS units respectively.

History

Viacom began life as CBS Films, the television syndication division of CBS. In 1971, the division was renamed VIACOM (Video & Audio Communications), and in 1973 it was spun off, amid new FCC rules forbidding television networks from owning syndication companies (the rules were later repealed).

Related Topics:
Syndication - CBS - 1971 - 1973 - FCC - Television network

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Viacom made large amounts of money during the 1970s and 1980s distributing old CBS classics to syndication, including such landmark shows as I Love Lucy, The Andy Griffith Show and All in the Family (which was later owned by Embassy/Columbia Pictures Television, now called Sony Pictures Television). They also syndicated shows for others, the biggest examples being The Cosby Show and Roseanne (which were produced by Carsey-Werner Productions; Carsey-Werner eventually got big enough to distribute their own shows, mainly because of the success of these two). Viacom also syndicated the Nickelodeon game shows Double Dare and Finders Keepers.

Related Topics:
1970s - 1980s - I Love Lucy - The Andy Griffith Show - All in the Family - Embassy - Columbia Pictures Television - Sony Pictures Television - The Cosby Show - Roseanne - Carsey-Werner Productions - Nickelodeon - Double Dare - Finders Keepers

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In 1985, Viacom bought Warner-Amex Satellite Entertainment, which owned MTV and Nickelodeon, renaming the company MTV Networks. Viacom also received Showtime Networks, Inc. (which included Showtime and The Movie Channel), which has retained its original name, Showtime Networks, Inc. In 1986, Viacom was bought by movie theater owner National Amusements, which brought Sumner Redstone to the company. Redstone made a string of large acquisitions in the early 1990s, announcing plans to buy Paramount Communications, parent of Paramount Pictures, in 1993, and buying the Blockbuster Video chain in 1994.

Related Topics:
1985 - Warner-Amex Satellite Entertainment - MTV - Nickelodeon - MTV Networks - 1986 - National Amusements - 1990s - Paramount Communications - Paramount Pictures - 1993 - Blockbuster Video - 1994

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The Blockbuster acquisition gave Viacom access to large television holdings controlled by Aaron Spelling's company, Spelling Entertainment; along with his own productions (such as The Love Boat and Beverly Hills 90210), Spelling controlled the pre-1973 ABC and NBC back catalogs by way of Worldvision Enterprises and Republic Pictures. After these acquisitions, Viacom owned many movie and television production and syndication units, which were slowly integrated into Paramount; many TV shows previously distributed by Viacom, Republic or Worldvision have since gained Paramount closing logos.

Related Topics:
Aaron Spelling - Spelling Entertainment - The Love Boat - Beverly Hills 90210 - ABC - NBC - Worldvision Enterprises - Republic Pictures

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In 1999, Viacom made what has been its biggest acquisition so far, by announcing plans to buy its former parent CBS. The merger was approved in 2000, bringing cable channels TNN (now Spike TV) and Country Music Television (CMT) under Viacom's wing, as well as CBS's production units and TV syndicators Eyemark (formerly Group W) and King World. As of this writing, CBS's production unit and King World (which has since absorbed Eyemark) are operating under their own names, as parts of CBS, and no attempt has been made thus far to move them around in Viacom's corporate structure; however, TNN and CMT were merged into MTV Networks almost immediately.

Related Topics:
1999 - 2000 - TNN - Spike TV - Country Music Television - King World

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In 2001, Viacom completed its purchase of Black Entertainment Television (BET). As with TNN and CMT, it was immediately integrated into MTV Networks, causing some outcry among BET workers in the Washington, DC area (where BET was based before the merger). As a result, BET was de-integrated from MTV Networks.

Related Topics:
2001 - Black Entertainment Television - Washington, DC

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Although a majority economic interest in Viacom is held by independent shareholders, the Redstone family maintains 71% voting control of the company through National Amusements' holdings of Viacom's class A stock.

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In 2002, Viacom bought independently-run music channel 'TMF,' which at the time was broadcasting in Belgium and Holland. In June 2004, Viacom bought the German VIVA Media AG, the German equivalent to MTV. Therefore, Viacom is now the only music television distributor in Germany. The same month, plans were announced to dispose of Viacom's interest in Blockbuster later that year by means of an exchange offer with exact terms to be announced.

Related Topics:
TMF - Belgium - Holland - VIVA Media AG

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In June of 2003 Sega announced that they would sell all Sonic The Hedgehog trademarks to Viacom.

Related Topics:
June - 2003 - Sega - Sonic The Hedgehog

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In March 2005, Viacom announced plans of looking into splitting the company into two publicly traded companies, amid issues of the stock price stagnating. One company, to be headed by Leslie Moonves, would include CBS, UPN, Infinity Broadcasting, Viacom Outdoor, Showtime Networks, and Paramount's Television Studio (which would make sense because Moonves' specialty is television). These businesses were catagorized as the "slow growth businesses" because while they provided steady cash flow, they don't have any growth potential. Some analysts say that these businesses are suffocating the growth of the MTV Networks cable businesses. The company will assume the moniker of CBS Corporation.

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The other company, which would keep the Viacom name, will be headed by Tom Freston, and will be 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 funds/capital to allow for future acquisitions and expansion. Sumner Redstone will still control 71 percent of the voting stock of both companies and will be the chairman of both companies. The company split was approved by the Viacom board on June 14, 2005.

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On December 2, 2004 Viacom acquired KOVR-TV in Sacramento, from Sinclair Broadcast Group. Viacom also acquired two stations in West Palm Beach. During 2005 it has announced it would sell several other non-duopoly UPN affiliates, in Indianapolis, Columbus, New Orleans, and Oklahoma City with possibilities of additional sales. In June 2005, Viacom announced that it has purchased Neopets, a virtual pet website.

Related Topics:
Sinclair Broadcast Group - 2005 - Duopoly - Indianapolis - Columbus - New Orleans - Oklahoma City - June - Neopets

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