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Viacom considering splitting into two Companies


CoastersRZ
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In an article that appeared in today`s edition of The Cincinnati Enquirer it states that Viacom is considering splitting into two seperate corporations. The article mentiones the slow growth of the theme park, radio and outdoor advertising under the same umbrella as high growth names such as MTV being one of the reasons Viacom`s stock has lagged.

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Mostly likely they would be able to keep everything Paramount. I figured something like this was up their sleeves since there was never a definite "Yes, we are for sale" kinda announcement.

This way they can let stuff like MTV flourish and become even more of a non-music playing tv station and they can create 30 more MTV's that none of which will play music videos either.

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This has been in the news a long time, they have been considering pulling another Blockbuster for a portion of the company, even if it means just for the Paramount Parks division.

Of course, that would leave a licensing problem if Paramount Parks became their own separate entity. They would have to go through the process of getting contracts set up for all the characters and brands. Not only with Paramount Studios/Viacom. They would also have to get rights from the original creator of characters like Spongebob, Jimmy Neutron, etc.

Then, Hanna-Barbera characters now owned by Warner Brothers/Cartoon Network would be a whole new can of worms too.

I would think if something like that happened current contracts would possibly not carry over. It could be a legal mess.

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Well, the Hanna Barbera Rights are left over from when Paramount bought KECO in 1992, and apparantly the rights expire in 2009 (which is one reason why Carowinds removed any evidence of Hanna Barbera this season with their new Nick area.) Rumor is that next year, it will be PKI`s turn to remove everything Hanna Barbera. The exception is the Scooby Rides, which Paramount has a license through Sally, the manufacturer.

The article, which was in today`s Enquirer, does not really mention the possible sale of the Parks. It just meniones that the company would divest itself into two seperate companies, with the Cable channels comrpising one company. I would imagine that they have two options, sell Paramount Parks, and the other slow growth assets, or split into two companies with the high growth and slow growth assests in seperate companies. Only time will tell what the fate of Paramount Parks lie. Either way, I believe that they will retain the licenses for all the Viacom properties. It is so ingrained in the parks now, and the advertising it provides for Viacom properties reaches more than millions of people every summer.

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Mostly likely they would be able to keep everything Paramount. I figured something like this was up their sleeves since there was never a definite "Yes, we are for sale" kinda announcement.

This way they can let stuff like MTV flourish and become even more of a non-music playing tv station and they can create 30 more MTV's that none of which will play music videos either.

Amen. Aint that the truth? dry.gif

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I will be extremely p!ssed off though if Cedar Fair buys PKI. I wouldnt mind if it was anyone but Cedar Fair, but if CP buys it there wont be any competition anymore and they will be able to raise the prices however much they want, plus we get all the crappy food and stuff that they have.

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^Yeah, their food sucks, but I don't think that CF would change much other than re-naming coasters and removing the theming. If CF would acquire Paramount Parks, it would be a good thing. PKI and CP are not really in competition any more anyway. CP goes for thrills while PKI goes for heavily themed attractions.

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Look at what’s going on at GL. There moving the entire water park over to the old Sea World side. Hmm...doesn’t take a genius to figure out what’s coming next.

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The reason that Soak City is a separate charge is because Cedar Point is a resort destination.

They are moving the water park so that side of the park doesn't seem so empty seeing how they got rid of the Sea World Side. This will also make room for the rumored hypercoaster. This doesn't mean that the water park will become a separate price. Geauga Lake is not a resort destination. There are no on-premise hotels.

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