CBS Corporation
| Company type | Public |
|---|---|
| Industry | Media |
| Founded | December 31, 2005 |
| Defunct | December 4, 2019 |
| Fate | Merged with Viacom to form ViacomCBS (now Paramount Global) |
| Headquarters | New York City , United States |
Area served | Worldwide |
Key people | Les Moonves (former CEO), Joe Ianniello (CEO of CBS-branded operations post-merger), Shari Redstone (vice-chair), Sumner Redstone (chairman emeritus) |
| Products | Commercial broadcasting, publishing, television content production, premium cable channels, music recording |
| Owner | National Amusements |
CBS Corporation was a multinational American media enterprise specializing in commercial broadcasting, publishing, and television content production. Established on December 31, 2005, it emerged from the division of Viacom, with both companies under the ownership of National Amusements, controlled by billionaire Sumner Redstone.
Its assets spanned over-the-air TV networks (CBS and The CW), television production and syndication (CBS Television Studios and CBS Television Distribution), publishing (Simon & Schuster), premium cable channels (Showtime Networks), and music recording (CBS Records). Ranked as the eighth largest entertainment firm worldwide by revenue, its headquarters were located at the CBS Building in Midtown Manhattan, New York City.
On August 13, 2019, CBS Corporation declared its intention to merge with Viacom to recreate ViacomCBS (currently known as Paramount Global), a transaction finalized on December 4, 2019.
Early history
The initial Viacom originated in 1952 as the television syndication arm of CBS before becoming independent in 1971. In 1994, Westinghouse acquired the CBS network, rebranding itself as CBS Corporation and divesting most of its industrial holdings. By April 2000, the first iteration of Viacom had acquired CBS Corporation.
At that juncture, the former CBS Corporation owned channels such as CMT and The Nashville Network (TNN), which remained part of Viacom following the 2005 separation. However, it lacked ownership of UPN, Showtime, Paramount Television, or Simon & Schuster.
In March 2005, due to stagnant stock performance and cultural differences between its cable and broadcast segments—exacerbated by the Super Bowl XXXVIII halftime show controversy involving MTV’s production for CBS—Viacom announced plans to split into two publicly traded companies.
The board approved this division on June 14, 2005. The reestablished CBS Corporation was headed by longtime executive and Viacom co-president Les Moonves, overseeing assets including the CBS network, UPN, Infinity Broadcasting Corporation, Viacom Outdoor, Showtime Networks, and Paramount Television.
This restructuring separated the second incarnation of Viacom from what became known as CBS Corporation—reminiscent of the original 1971 spin-off but with CBS retaining most broadcast properties.
Both entities commenced trading on the New York Stock Exchange on January 2, 2006, under ticker symbols "CBS.A" and "CBS." Following the split, Viacom’s shares declined approximately 20%, while those of CBS Corporation increased by about 9%. That year also saw Paramount Parks become a fully owned theme park division within CBS Corporation.
Subsequent developments
In January 2006, CBS partnered with DIC Entertainment to launch "CBS's Saturday Morning Secret Slumber Party," later rebranded in June with AOL's KOL as a production partner to "KOL's Saturday Morning Secret Slumber Party on CBS."
On January 24, 2006, CBS Corporation joined forces with Time Warner to establish The CW network by merging The WB and UPN. The CW officially launched on September 18, 2006, with equal ownership split between CBS Corporation and Time Warner. Tribune Broadcasting and CBS Television Stations provided affiliate support.
On May 23, 2006, Cedar Fair Entertainment Company acquired Paramount Parks from CBS for $1.24 billion, elevating Cedar Fair to the position of third-largest theme park operator. The agreement included a decade-long licensing arrangement permitting use of the Paramount brand name through 2017.
In early 2007, CBS sold several smaller-market television stations to Cerberus Capital Management for $185 million and exchanged other stations with Liberty Media in a transaction valued near $234 million involving cash and equity components.
February 2007 marked CBS's investment in Electric Sheep to extend its ventures into virtual world content creation, producing initiatives like "The L-Word in Second Life" and a Star Trek-inspired environment. The following month saw the acquisition of MaxPreps, an online high school sports platform. April brought the launch of the CBS Interactive Audience Network. In May, CBS Interactive purchased Last.fm for £140 million.
On May 15, 2008, CBS Interactive agreed to acquire CNET Networks for $1.8 billion; this purchase was finalized by July under its digital division.
In February 2013, CBS obtained a minority interest in AXS TV for programming collaboration and marketing efforts. The next month it formed a joint venture equally owned with Lionsgate to operate the TV Guide Network and TVGuide.com; by May that year, CBS acquired Lionsgate’s remaining stake in TV Guide Digital. In March 2019, CBS completed full ownership of TVGN (later renamed Pop). July 2013 saw the sale of its international billboard operations to Platinum Equity for roughly $225 million; this business became an independent real estate investment trust named Outfront Media by mid-2014.
On November 17, 2017, CBS divested its radio division (CBS Radio) to Entercom, making Entercom the second-largest radio station owner in the United States. That same year included acquiring Australian broadcaster Network 10, which was undergoing voluntary administration.
By November 2018, CBS Corporation ranked number 197 on the Fortune 500 list based on revenue. Also that year, it sold Television City in Los Angeles to Hackman Capital Partners for $750 million; this transaction granted rights to use the Television City name while CBS retained production facilities and maintained its international headquarters there.
Viacom Re-merger Proposal
On September 29, 2016, National Amusements suggested combining CBS Corporation with Viacom to capitalize on significant synergies; however, this merger plan was abandoned by December of the same year.
By January 2018, amid industry-wide consolidation triggered by AT&T’s intended acquisition of Time Warner and Disney’s purchase of 21st Century Fox assets, Viacom resumed merger discussions with CBS. The unified company was viewed as a prospective bidder for Lionsgate, which would strengthen content distribution capabilities. Such a merger presented strategic benefits for CBS All Access by incorporating Viacom’s prominent brands such as Comedy Central, MTV, Nickelodeon, and the Paramount Pictures catalog, while also broadening global market presence.
In March 2018, CBS submitted an all-stock proposal valued below Viacom’s market price, while insisting on maintaining CEO Les Moonves’ leadership. Viacom declined the offer, requesting an additional $2.8 billion and a leadership role for Bob Bakish. These talks highlighted internal power dynamics linked to Shari Redstone’s efforts to increase her influence.
By May 2018, CBS filed a lawsuit against National Amusements, accusing Redstone of misusing voting authority to coerce an unwanted merger and obstruct Verizon’s potential bid for CBS. Moonves openly denounced Viacom channels as a “burden” and favored alternative alliances with MGM or Lionsgate. Following Moonves’ resignation in September 2018 amid sexual misconduct allegations, National Amusements agreed to postpone merger discussions for two years and pledged $20 million toward #MeToo initiatives.
Merger talks resumed in May 2019 after board changes created a more favorable environment and with Moonves no longer at CBS. Speculation included CBS potentially acquiring Starz from Lionsgate. By mid-2019, CBS aimed to conclude the merger by an informal August deadline.
On August 13, 2019, CBS and Viacom reached an agreement to merge into ViacomCBS (now known as Paramount Global), naming Viacom CEO Bob Bakish as president and CEO of the merged entity, while CBS CEO Joe Ianniello took charge of CBS-branded operations. Shari Redstone assumed the role of chairwoman of ViacomCBS. National Amusements approved the transaction on October 29, 2019; the merger was finalized on December 4, 2019, with Viacom absorbed into CBS and rebranded as ViacomCBS. The combined company is publicly traded on Nasdaq under the tickers "VIAC" and "VIACA," representing a strategic consolidation designed to expand market share and enhance competitiveness in the global media landscape.
Corporate governance
The CBS Corporation board included prominent executives and sector leaders such as Candace K. Beinecke, Barbara M. Byrne, Gary L. Countryman, Brian Goldner, Linda M. Griego, Robert N. Klieger, Martha L. Minow, Shari Redstone (vice-chair), Sumner Redstone (chairman emeritus), Susan Schuman, Frederick O. Terrell, and Strauss Zelnick (interim chairman). This leadership framework was structured to uphold the company’s competitive positioning and support sustained growth.
See also
- Westinghouse Electric Corporation, predecessor acquired by Viacom in 1999
- CBS Television Stations, managing CBS Corp.'s TV assets
- Concentration of media ownership and Media conglomerate
- MTV Networks/BET Networks, now part of Paramount Global
External links
- Official site (archived December 2018)