To better cope with the growing competition from platforms such as Netflix and soon Disney +, the Viacom and CBS groups have finally decided to merge to create a media giant led by CBS, MTV, Comedy Central and Paramount Studios.
$ 28 billion in sales
Called ViacomCBS, the new company will have a turnover of 28 billion dollars and a stock market value of about 30 billion. The rapprochement comes at a time when the American audiovisual landscape is radically changing, the "traditional" actors (televisions, studios, cable operators) having to face the rise of online video platforms like Netflix, Amazon Prime Video or Apple TV.
Reconciliation in series
Faced with their new business model, without advertising but subscription, and their technological innovations, several groups have already felt the need to beef up their offer to keep their stature in the ruthless jungle of American entertainment. Telecoms giant AT & T got hold of Time Warner (HBO, CNN, TBS and Warner Bros) while Comcast seized NBCUniversal.
Disney bought the bulk of 21st Century Fox for $ 71 billion and plans to launch its own Disney + platform in November. Isolated, CBS and Viacom could have struggled to make weight. To justify their merger, they also highlight the fact that, together, they will have an even greater financial capacity to invest in new content and new technologies.