New York (AFP)

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.

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.

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.

In addition to their existing catalogs, more than 140,000 television shows and 3,600 films, they have spent $ 13 billion in new content over the last twelve months.

For the boss of the new entity, the current chief executive of Viacom Bob Bakish, the combination of assets and skills of CBS and Viacom creates "one of the few companies with content and reach large enough and varied to shape the future (of) sector ".

- Homecoming -

ViacomCBS will lead the first television group in the United States, via terrestrial or cable, as well as Paramount movie studios and the Simon & Schuster publishing house. The merger also brings together several successful franchises such as the Star Trek and Mission Impossible sagas.

The group will also manage important bouquets in the United Kingdom, Argentina and Australia, as well as cable channels in more than 180 countries.

The two entities meet after more than a decade of separation, this operation reconstituting an entity that existed until 2006, before the holding controlling the two groups, about 80%, National Amusements, decided to to separate.

The daughter of the founder of National Amusements become Summer Redstone media mogul, Shari Redstone, will be the chair of the board.

The reunion will not be done without a hitch, the two groups having already proceeded without success several attempts of rapprochement. The former boss of CBS, Leslie Moonves, has for a long time strongly opposed the merger, desired by Mrs. Redstone, the battle is sometimes played in court.

However, Moonves was ousted last September on charges of sexual abuse.

The merger must be completed by the end of 2019 if it obtains the green light from the authorities concerned, in particular those of the competition.

© 2019 AFP