CBS and Viacom merged to better compete in streaming

The company CBS Corp. and Viacom Inc. se merged and created a new organization to compete better in streaming, so reported reuters.com.

By MiamiDiario Newsroom

The agreement reached BS Corp and Viacom Inc. unites the US entertainment empire of billionaire media entrepreneur, sumner redstone, to have a larger company that will be able to compete in a sector dominated by large emporiums.

The company will be called ViacomCBS Inc, the partners of CBS will have 61% of the capital and the shareholders of Viacom, 39%.

By uniting these companies, the television network will be integrated CBS, CBS News, the Showtime cable networks that are made up of MTV Networks, Nickelodeon, Comedy Central and film studios Paramount.

Viacom Cbs Inc. It will have rights to more than 140.000 television episodes and 3.600 movies. The income produced by these products is estimated at approximately $28.000 billion annually.

The value of Viacom Cbs Inc. on the market is about 30.000 million, its value is much lower when compared to its competition such as Walt Disney Co., Netflix Inc, or Comcast Corp.

The holding company owned by the tycoon Sumner Redstone and his daughter, Shari Redstone, National Amusements Inc. will be the one who manages the company ViacomCbs Inc.

This is the third attempt to integrate the companies since 2016, finally Shari Redstone achieved this goal.

After the merger was announced, the Shares of both companies increasedViacom's rose 2,4% to $29,21, and CBS's rose 1,4% to $48,70.