ViacomCBS Merger: An Inevitable Move in the Streaming Wars

Strained as the bonds between Viacom and CBS may have been in the past, the landscape of the media industry today is pushing for an inevitable re-merger. In a time where competition in the streaming space is fierce, the acquisition trends of past giants such as Disney (Fox), Comcast (NBC/Universal), and ATT (Time Warner) set a precedent of consolidation. As industry giants grow larger and more diverse, so too will Viacom and CBS, if they are to remain competitive in the future.

Consolidation in the Media Landscape

The entertainment ecosystem is rapidly evolving, and in the face of this change, companies are realizing the need to become more substantial and versatile. In recent years, major players like Disney, Comcast, and ATT have made significant acquisitions to expand their portfolios. In doing so, these companies are introducing more coordination among their various media assets.

It's clear that ignoring this trend or attempting to hold back the tide would be a strategic mistake. For Viacom and CBS, the challenge is more about catching up and staying competitive. Staying separate might make sense from a legal or historical perspective, but in the modern digital landscape, it no longer equips them to handle the challenges they face.

The Redstone family, which owns the controlling interests in both Viacom and CBS, recognizes the need for consolidation. They understand that in this new era of media, staying separate could harm their ability to compete effectively. This understanding is key to driving the push for a re-merger.

Future of Viacom and CBS

The news of Les Moonves stepping down as CEO of Viacom CBS has been a significant development. Moonves was a vocal opponent of the merger, and his departure is likely to make the re-merger process smoother. This change, along with the groundwork laid by the Redstone family, sets the stage for a more positive outcome for the re-merger effort.

For CBS, the bigger of the two companies, the benefits of staying together are clear. CBS can leverage the content from Paramount Pictures and the assets of Viacom’s cable networks, such as MTV, Comedy Central, and Nickelodeon. In the digital age, competition is fierce, and the ability to offer a comprehensive and diverse content portfolio becomes increasingly important.

The strategic move towards a re-merger would allow CBS to consolidate its content offerings and strengthen its presence in the streaming space. As cable networks like MTV and Comedy Central move their shows to platforms like CBS All Access, Viacom’s reach will be extended. This consolidation would also allow CBS to compete more effectively against other major streaming services such as Fox and the newly integrated old Time Warner content.

Conclusion

The media landscape is rapidly changing, and the options for Viacom and CBS are clear: re-merger or fall behind. With the support of the Redstone family, the departure of Les Moonves, and the consolidation trends set by other industry giants, the re-merger of Viacom and CBS is inevitable. In this era of the streaming wars, staying together is no longer just a strategic choice but a necessity for survival and success.