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Viacom Split


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Okay, I know this was posted before, but there were new updates from the Enquirer today. Looks like they are just doing the split for the shares, but we will see what will happen in due time.

By Paulette Chu

The Associated Press

NEW YORK – Shareholders of Viacom Inc. will get half a share of the new Viacom and half a share of CBS Corp. for each share they currently hold when the media conglomerate splits itself into two companies, the company said today.

Viacom detailed terms of its plan to split itself into two public companies in a filing with the Securities and Exchange Commission but didn’t give a specific date for when it expects to finish the break-up.

New York-based Viacom plans to group its cable and entertainment businesses under the Viacom name and put its broadcasting units under the CBS name.

The new Viacom will include the company’s cable and entertainment brands, including MTV Networks, BET and Paramount Pictures, while the new CBS Corp. will include CBS television, UPN and Viacom’s theme park division. Kings Island in Mason is one of the division’s properties.

After the split, Viacom shares will trade on the New York Stock Exchange under the symbols “VIA†and “VIA.B,†and CBS shares will trade under “CBS.A†and “CBS.â€Â

Viacom first disclosed it was considering breaking up the company in March amid frustration with its languishing stock price. The stock traded as high as $75.88 in July 2000, but has generally struggled since.

Les Moonves, the current head of CBS and co-president of Viacom, will head CBS, and Tom Freston, the longtime chief of MTV and Viacom’s other co-president, will lead the new Viacom.

Viacom has said it hopes that the MTV-based unit will attract investors seeking fast-growing businesses, while those seeking dividends and more aggressive share buybacks will buy shares in the new CBS Corp., whose businesses are slower-growing but still generate a lot of cash.

The split also resolves the issue of who will succeed Viacom Chief Executive Sumner Redstone, who turned 82 this year. Freston and Moonves had been seen as competing for the top spot.

Shares of the company rose 21 cents to $33.01 in morning trading on the New York Stock Exchange.

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Because there have been several posts about this in the past about Viacom dividing into two companies. Now, all Paramount Parks are part of CBS. Truthfully, it doesn't affect the operations of PKI except it will have a new corporate ownership. This was just an update.

EDIT: OOPS, Legend Rider and I both at the same time, lol.

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From what past articles have said, it will still be Paramount's Kings Island. Now that they are advertising CSI and other CBS shows on Qtv throughout the park maybe they will be put in some attractions dealing with CBS shows. Like that stupid attack of the bugs made for tv movie CBS put out. Maybe a CSI attraction.

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Viacom is splitting into two companies. Viacom owns Paramount Pictures and Paramount Parks, although after the split, they will be on both sides of the new company. There will likely not be much change in the licensed rights and access to the Viacom library. I would not anticipate to see more CBS theming, but a continuation of the current Viacom properties, which incluse CBS. There probably won`t be much change in park operations, other than the fact that budgets might increase for capital expenditure (hopefully!)

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  • 3 years later...
And now Mr. Redstone may end up sacrificing his theaters, and maybe even CBS, just to retain VIACOM....Why? High debt load and low equity prices.

http://www.nytimes.com/2008/11/25/business...stone.html?_r=1

Mr. Redstone's debt restructuring is proceeding very slowly...this may end badly for the virtually de facto former owner of Kings Island:

http://www.reuters.com/article/mnaNewsTech...G25990020081202

Sold his entire interest in Midway Games:

http://seekingalpha.com/article/108717-sum...midway-entirely

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