Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 18 pages
Data source: Published sources
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https://casecent.re/p/66099
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Abstract
This case traces the origin, development and growth of Viacom from a subsidiary company to the world’s third largest media conglomerate. The main focus of the case is its merger with its parent company Columbia Broadcasting System (CBS) in 2000, and then the decision made in 2005, to split Viacom back into two companies, Viacom and CBS. The case describes the industry situation in 2000 and 2005, and the rationale which led to the decisions. The operating business segments of Viacom before the split, and the businesses Viacom and CBS would operate in after the split, are explained in detail. The case describes the media landscape and the trend of consolidation and mergers in the 1990s that led to the formation of huge media conglomerates operating in all possible media and entertainment properties. With the passage of time, achieving synergies between such large and sometimes disparate assets became questionable, leading to the conglomerates pruning their businesses by focusing on the core businesses and spinning off the non-core ones. This case on Viacom is a classic example of the same phenomenon. The case discusses the succession planning undertaken by Viacom’s Chief Executive Officer (CEO) Sumner Redstone and the opportunities and challenges in front of the newly appointed CEOs of the two companies, Viacom and CBS, and their vision in taking their respective companies forward.
About
Abstract
This case traces the origin, development and growth of Viacom from a subsidiary company to the world’s third largest media conglomerate. The main focus of the case is its merger with its parent company Columbia Broadcasting System (CBS) in 2000, and then the decision made in 2005, to split Viacom back into two companies, Viacom and CBS. The case describes the industry situation in 2000 and 2005, and the rationale which led to the decisions. The operating business segments of Viacom before the split, and the businesses Viacom and CBS would operate in after the split, are explained in detail. The case describes the media landscape and the trend of consolidation and mergers in the 1990s that led to the formation of huge media conglomerates operating in all possible media and entertainment properties. With the passage of time, achieving synergies between such large and sometimes disparate assets became questionable, leading to the conglomerates pruning their businesses by focusing on the core businesses and spinning off the non-core ones. This case on Viacom is a classic example of the same phenomenon. The case discusses the succession planning undertaken by Viacom’s Chief Executive Officer (CEO) Sumner Redstone and the opportunities and challenges in front of the newly appointed CEOs of the two companies, Viacom and CBS, and their vision in taking their respective companies forward.