In an interview with CNBC’s Andrew Ross Sorkin, Bakish cited ViacomCBS’s snort material library, which incorporates a hundred and forty,000 TV episodes, 36,000 movies and 750 sequence, as ample ammo to fight the likes of Netflix, Disney, Comcast and others entering the TV streaming wars.
The feedback attain after CBS and Viacom announced Tuesday an settlement to merge, reuniting the 2 corporations after thirteen years apart and just a few alternative makes an try at a deal since 2016. The original company will be called ViacomCBS and Bakish will lead the blended entity.
“It in truth has almost unmatched scale on the snort material aspect,” Bakish said. “We clearly have scale in snort material. There’ll not be any ask the companies are clearly stronger collectively than they’re independently.”
Serene, Viacom and CBS, that are valued at $Eleven.eight billion and $18.2 billion respectively, are dwarfed by Disney, which is price $246.eight billion, and Netflix, which has a market cap of $136.7 billion.
With the merger announced, investors’ consideration has turned as to whether or no longer ViacomCBS will pursue extra deals so that you can further toughen its competitive edge. Bakish said M&A could perchance well again as a “automobile” to develop its scale, adding that the company is having a stare at its alternatives tantalizing forward.
“It’s early days, we’re factual getting began,” Bakish said.
“[CBS and Viacom] came apart at a assorted time in media, with assorted circumstances around it,” Bakish said. “Inserting them collectively this day is the loyal switch.”
The acquisition, which is anticipated to interior attain year’s discontinue, creates a blended company with extra than $28 billion in earnings.
CBS stands to impression the movie studio Paramount Images, cable networks including Comedy Central, MTV, Nickelodeon and BET, as successfully as the streaming provider Pluto TV and South Park Studios because of a merger with Viacom. CBS owns the legacy broadcast community, as successfully as to other cable and media properties.
As soon as the merger is complete, it is probably that the blended corporations could perchance well stare to impression yet any other company, equivalent to Discovery, Starz or Sony, amongst others. Lions Gate, the mother or father company of Starz, has previously held talks with CBS about offloading the highest rate leisure community.
Disclosure: Comcast is the proprietor of NBCUniversal, the mother or father company of CNBC and CNBC.com.