Jump to content

Viacom (2005–2019)

From Alfawiki
Viacom Inc.
Company typePublic
IndustryMass media
Entertainment
PredecessorThe original Viacom entity
FoundedDecember 31, 2005; 20 years ago (2005-12-31)
FounderSumner Redstone
DefunctTemplate:End date and age
FateUnited with the second version of CBS Corporation to establish ViacomCBS
SuccessorParamount Global
Headquarters
One Astor Plaza, Manhattan, New York City, U.S.
Area served
Global
Key people
Products
RevenueDecrease Template:US$ (2019)
Decrease Template:US$ (2019)
Decrease Template:US$ (2019)
Total assetsDecrease Template:US$ (2019)
Total equityIncrease Template:US$ (2019)
OwnerNational Amusements (80% voting control)
Number of employees
11,200 (2017)
Divisions
Subsidiaries
Websitewww.viacom.com (archived December 3, 2019)

The second iteration of Viacom Inc. functioned as an American global conglomerate specializing in mass media and entertainment, with a primary focus on cable television and motion pictures. On December 31, 2005, it emerged as a spin-off from the original Viacom, simultaneously with the reestablishment of CBS Corporation. National Amusements, under the leadership of entrepreneur and founder Sumner Redstone, controlled both entities; the original Viacom was renamed CBS Corporation while its cable and film segments were separated to form the new Viacom.

Operating under Viacom Media Networks, the company managed approximately 170 channels that reached an audience of nearly 700 million subscribers spanning over 160 countries. Its production assets included Paramount Pictures, MTV Films, Nickelodeon Animation Studio, along with a minority interest of 30% in Rainbow S.p.A. Meanwhile, CBS Corporation retained ownership of broadcast networks, television content production, subscription-based pay TV services, and publishing businesses.

Based in One Astor Plaza in Midtown Manhattan, New York City, Viacom was ranked as the ninth-largest media enterprise worldwide by revenue prior to its 2019 reunion with CBS Corporation. This consolidation was finalized on December 4, resulting in the creation of ViacomCBS—now known as Paramount Global—which unified their international operations and enhanced their competitive positioning within the media sector.

Early years

In March 2005, the original Viacom revealed intentions to split into two separate publicly traded entities, prompted by a stagnant stock performance and internal leadership tensions between Les Moonves (CBS) and Tom Freston (MTV Networks). The company also grappled with fallout from the 2004 Super Bowl Halftime Show controversy.

After chairman and CEO Sumner Redstone oversaw the 2004 exit of Mel Karmazin, he divided the president and COO responsibilities between Moonves and Freston as part of a succession strategy. The division sought to establish two investment profiles: one characterized by stable cash flow and dividend payouts but slower growth, and another focused on growth through reinvestment.

The newly formed Viacom, guided by Freston, encompassed BET Networks, MTV Networks, and Paramount Pictures, commencing trading on January 3, 2006.[1]

2000s

By June 2005, Viacom had broadened its digital presence through acquisitions including virtual pet platform Neopets, GameTrailers, GoCityKids, and iFilm. In December of that year, Paramount announced plans to acquire DreamWorks Pictures; Viacom retained live-action film and television production units while divesting DreamWorks' animation division and film library.

The DreamWorks acquisition was finalized in February 2006. Subsequently, in April, Viacom purchased the online gaming service Xfire for $102 million. August brought the $200 million acquisition of Atom Entertainment, followed by September’s $175 million purchase of game developer Harmonix.

In 2007, Viacom initiated legal proceedings against YouTube over copyright violations and partnered with Silicon Valley distributor Joost to provide free online streaming of its content.

On May 21, 2007, Viacom established a joint venture equally owned with Indian media firm Network 18, creating Viacom 18. This partnership combined Viacom’s Indian channels—MTV, VH1, Nickelodeon—with Network 18’s Bollywood properties to expand offerings in Hindi entertainment and movie broadcasting.

In December 2007, Viacom secured a five-year agreement valued at $500 million with Microsoft for content licensing and advertising. This deal included licensing Viacom programming for Xbox Live and MSN platforms and positioned Viacom as a preferred partner for casual gaming on Microsoft services. Additionally, Microsoft’s Atlas ad-serving technology was designated exclusive for unsold ad inventory on Viacom websites. Microsoft also increased advertising investment in Viacom broadcasts and collaborated on promotional campaigns for MTV and BET awards.

During the economic downturn in 2008, Viacom reduced its workforce by laying off approximately 850 employees—around seven percent of its staff. Contract renewal disagreements with Time Warner Cable and Bright House Networks nearly led to a blackout of Viacom channels in major markets but were resolved before disruption occurred.

On December 7, 2009, Viacom sold its share in MTV Brasil to Grupo Abril, transferring brand ownership as part of strategic portfolio realignment.

2010s

In February 2011, Hulu and Viacom announced that The Daily Show with Jon Stewart and The Colbert Report would return to Hulu alongside other shows from Viacom’s catalog—excluding content from Nickelodeon. That same month, Viacom became a co-owner of Italian studio Rainbow S.p.A., known for the Winx Club franchise. Since then, Nickelodeon channels have broadcast Rainbow’s series worldwide while American studios have collaborated on productions such as Winx Club and Club 57.

Viacom acquired a controlling interest in Bellator Fighting Championships in October 2011; starting in 2013, the competition aired on Spike, following the loss of UFC broadcasting rights in 2012.

On December 1, 2011, Viacom transitioned its stock listing from the New York Stock Exchange (NYSE) to the Nasdaq, maintaining its existing ticker symbols.

A carriage dispute in July 2012 led Viacom to remove 17 networks—including Nickelodeon, MTV, and Comedy Central—from DirecTV’s service affecting approximately 20 million subscribers. After temporarily limiting online content availability, both parties reached an agreement on July 20 restoring full programming access.

CEO Philippe Dauman indicated in 2012 that Viacom planned to package its archival content for distribution on on-demand platforms such as Hulu.

Viacom launched its marketing division called Viacom Velocity on January 22, 2014; this unit provides integrated marketing strategies combined with creative content development.

In April 2014, Cable One permanently dropped fifteen Viacom channels following unsuccessful contract negotiations; these were replaced with alternative networks. Similarly, Suddenlink Communications removed Viacom channels on October 1, 2014 due to carriage disputes; these channels were reinstated on May 25, 2017.

On May 1, 2014, Viacom agreed to purchase British broadcaster Channel 5 from Northern & Shell for £450 million. This acquisition marked the first time an American media firm owned a UK public service broadcaster; the transaction was completed on September 10.

Viacom expanded its presence in Latin America by acquiring Argentine network Telefe in November 2016. Later that year in December, Bob Bakish was appointed CEO to lead company turnaround initiatives.

In November 2017, Viacom established a digital content division named Viacom Digital Studios under former AwesomenessTV executive Kelly Day. The company further enhanced youth engagement by acquiring internet video conference VidCon in February 2018.

Early in 2018, Viacom announced plans for an ad-supported streaming platform slated for launch in fall that year to complement existing OTT services. This new service aimed to provide exclusive access to series from Viacom Media Networks unavailable on Hulu or Amazon Prime Video.

At the April 2018 Digital Content NewFronts event, Viacom revealed original digital programming tailored for platforms like Facebook and Snapchat along with plans to extend VidCon events internationally with a London edition scheduled for 2019.

In July 2018, Viacom acquired AwesomenessTV for $25 million—a substantial reduction from its previous $650 million valuation—with CEO Jordan Levin departing following the acquisition. In January 2019, Viacom further expanded its streaming assets through the $340 million purchase of Pluto TV.

Re-merger agreement with CBS

On September 29, 2016, National Amusements put forward a proposal to combine Viacom and CBS Corporation, aiming to capitalize on significant synergies; however, this plan was abandoned by December of the same year. In January 2018, Viacom resumed merger discussions with CBS amid ongoing consolidation in the industry driven by AT&T and Disney’s moves, alongside intensifying competition from Netflix and Amazon. The merged company was viewed as a potential bidder for Lionsgate and expressed interest in acquiring The Weinstein Company (TWC), though the acquisition ultimately went to Maria Contreras-Sweet.

By March 2018, CBS presented an all-stock bid that fell short of Viacom’s market valuation while insisting on maintaining CEO Les Moonves’s leadership. Viacom declined the offer, seeking a higher price and the continuation of Bob Bakish as president and COO. These leadership disputes mirrored Shari Redstone’s efforts to increase her influence over CBS. In May, CBS filed a lawsuit against National Amusements, accusing Redstone of misusing voting rights to coerce a merger and alleging she discouraged Verizon’s potential acquisition interest.

Moonves openly criticized Viacom’s channels as liabilities but supported expanding CBS All Access content through acquisitions such as MGM or Lionsgate. He perceived Bakish as a threat due to his close association with Redstone. Following sexual assault allegations, Moonves resigned in September 2018; subsequently, National Amusements agreed to postpone merger attempts for two years.

In mid-2019, with CBS’s board more amenable after Moonves’s departure, merger negotiations restarted amid speculation that CBS might acquire Starz from Lionsgate. An informal deadline was set for August to finalize an agreement. CBS planned to purchase Viacom for up to $15.4 billion to bolster its competitive stance against major rivals by leveraging valuable intellectual property like Star Trek.

On August 2, 2019, both companies reached consensus on leadership for the merged entity: Bob Bakish would serve as CEO of the combined company and interim CEO of CBS, while Joseph Ianniello would manage CBS-branded assets. The official announcement was delayed until August 13, when the deal was publicly revealed—CBS would acquire Viacom and rebrand as ViacomCBS (currently Paramount Global). Shari Redstone was named chairwoman of the new organization. National Amusements approved the merger in October, with completion anticipated in early December. The transaction closed on December 4, 2019, forming a media conglomerate with expanded global reach and enhanced competitive positioning in content distribution and streaming platforms.

Copyright disputes involving YouTube

In February 2007, Viacom issued more than 100,000 takedown notices under the Digital Millennium Copyright Act (DMCA) to YouTube, inadvertently resulting in the removal of approximately 60–70 non-infringing videos. On March 13, 2007, Viacom initiated a $1 billion lawsuit against Google and YouTube, alleging extensive copyright violations that harmed Viacom’s revenues while benefiting YouTube’s advertising earnings. The complaint asserted that nearly 160,000 unauthorized Viacom clips had been viewed over 1.5 billion times.

In July 2008, District Judge Louis Stanton ordered YouTube to disclose detailed user viewing information but safeguarded YouTube’s search engine source code as proprietary trade secret material. Subsequently, Google and Viacom agreed to anonymize user data prior to sharing.

On June 23, 2010, Judge Stanton ruled in favor of Google, citing protections under the DMCA despite evidence suggesting willful infringement. Viacom appealed this ruling.

On April 5, 2012, the United States Court of Appeals for the Second Circuit reversed the decision, indicating that a reasonable jury could conclude YouTube had actual knowledge of specific infringing activities. Legal analysts cautioned this ruling might compel startups to adopt aggressive content removal practices to mitigate liability risks.

On April 18, 2013, Judge Stanton again granted summary judgment supporting YouTube. Prior to an appeal hearing before the Second Circuit Court of Appeals, both parties reached a settlement without financial compensation exchanged. Since then, Viacom (also referred to as B_Viacom) has adopted a more proactive strategy by directly removing videos or restricting access by country themselves.

Corporate governance

Throughout its history, Viacom's board of directors has featured prominent figures in the business world, including George S. Abrams, Philippe Dauman, Alan Greenberg, Charles Phillips, Shari Redstone, and Sumner Redstone, who served as chairman until his death. Following the separation of Viacom and CBS, the board was composed of key leaders such as Dauman, Abrams, Dooley, Futter, Kraft, McGarvie, Bakish, alongside members of the Redstone family. This governance framework was designed to provide strategic oversight that would maintain Viacom's competitive position and drive growth within the media sector.

See also


Further reading

  • Stewart, James B.; Abrams, Rachel (2023). Unscripted: The Epic Battle for a Media Empire and the Redstone Family Legacy. Penguin Press. ISBN 9781984879424.

External links

  1. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
Retrieved from "https://www.alfawiki.org/index.php?title=Viacom_(2005–2019)&oldid=11753"