Report: CBS & Viacom Considering a Merger to Address Cord Cutting





With the growth of cord cutting has come tough decisions on how to address the changing world of TV entertainment.

Now it is being reported that Viacom Inc and CBS Corp are once again considering merging. Back in 2010, the two companies merged only to break back into two companies in 2016, at the request of both boards.

Both Viacom and CBS have the same controlling family: the Redstone family. If these reports are correct, they could once again be a single company.

Merging the two companies would give them stronger bargaining power when it comes to contract negotiations and could possibly bring Viacom content to CBS’s streaming efforts like CBS All Access or the growing number of free streaming services from CBS.

After this possible merger was reported both CBS and Viacom saw their stocks shoot up in trading on Friday.

This push to make media companies like Viacom and CBS larger is not just about cord cutting. There is a growing number of content providers such as Netflix, Hulu, and Amazon creating original programs enjoyed by cord cutters and cable subscribers alike. To help fight back from a shrinking viewership content companies are hoping to grow their footprint through mergers like this one.

As of today the deal is not official, but it is rumored to being close to being done.

Source: Variety

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