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Viacom Splits Its Channels
By David Utter
Expert Author
Article Date: 2005-06-14
The media company has decided to separate its fast-growing cable segment and its older broadcast concern into two companies.
Viacom's board approved the split today, and Tom Freston and Les Moonves will server a co-chief operating officers, each overseeing one of the new companies.
Mr. Freston will take the helm of the cable company, to be called Viacom Inc. That firm will oversee Nickolodeon, MTV, and Paramount Pictures.
Meanwhile, Mr. Moonves will run CBS Corp, and will oversee CBS and UPN, Infinity Broadcasting, Showtime, billboard company Viacom Outdoor, and publisher Simon and Schuster.
Chairman Sumner Redstone will continue to chair both new, publicly-traded companies, an announcement that was expected. Shareholders will end up with shares of both companies when the deal becomes finalized in early 2006.
Mr. Redstone had announced last year that Viacom was considering a breakup. Issues in the radio sector, where Viacom's Infinity Broadcasting competes, have been a drag on its stock price and kept the company from expanding.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.
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