Viacom (1971–2005)
Encyclopedia
Viacom stylized as VIACOM in its current logo, was an American media conglomerate. It was the owner of CBS
, Nickelodeon
& MTV
, among others. Effective December 31, 2005, this corporate entity changed its name to CBS Corporation
. The present firm known as Viacom
was also established at that date and is a new spin-off company created during the CBS-Viacom split.
Viacom was highly profitable during the 1970s and 1980s distributing old CBS classics to syndication, including such landmark shows as I Love Lucy
, The Andy Griffith Show
, The Twilight Zone
and All in the Family
(which was later owned by Embassy
/Columbia Pictures Television
, now called Sony Pictures Television
). They also syndicated shows for others, the biggest examples being The Cosby Show
and Roseanne
(which were produced by Carsey-Werner Productions
. Carsey-Werner eventually got big enough to distribute their own shows, mainly because of the success of these two).
division of CBS
established in 1952. The division was spun off
and renamed Viacom in 1971, amid new FCC
rules forbidding television network
s from owning syndication companies (the rules were later repealed).
, Washington, D.C.
, Houston
, and San Francisco
, and one television station, WAST (now WNYT) in Albany, New York
.
Later that year, Viacom added WHNB-TV in New Britain, Connecticut
, changing its call letters to WVIT
. The early 1980s saw Viacom sorting through the Sonderling stations with several being donated, swapped, or being the nucleus for new corporations—for example, WOL
in Washington launched the Radio One group, which today is the largest African-American-owned broadcasting corporation.
In 1983, Viacom purchased KSLA-TV
in Shreveport, Louisiana
, and WHEC-TV
in Rochester, New York
, in separate transactions, followed in 1986 with (ironically) CBS-owned KMOX-TV in St. Louis
; with the purchase, that station's call letters were changed to KMOV
.
In 1985, Viacom bought Warner-Amex Satellite Entertainment
, which owned MTV
and Nickelodeon
, renaming the company MTV Networks
. Viacom also received Warner-Amex's share of Viacom/WASEC joint venture Showtime Networks
, Inc, which included Showtime and The Movie Channel
.
In 1986, Viacom was bought by movie theater owner National Amusements
, which brought Sumner Redstone
to the company. Redstone retained the Viacom name and made a string of large acquisitions in the early 1990s, announcing plans to merge with Paramount Communications, parent of Paramount Pictures
, in 1993, and buying the Blockbuster Video chain in 1994.
The Blockbuster acquisition gave Viacom access to large television holdings controlled by Aaron Spelling
's company, Spelling Entertainment; along with his own productions, Spelling controlled the pre-1973 ABC
and NBC
back catalogs by way of Worldvision Enterprises and Republic Pictures
.
In 1999, Viacom made its biggest acquisition to date by announcing plans to merge with its former parent CBS Corporation. The merger was approved in 2000, bringing cable channels TNN (now Spike TV
) and Country Music Television
(CMT) under Viacom's wing, as well as CBS's production units and TV syndicaters Eyemark Entertainment (formerly Group W) and King World. CBS's production unit and King World (which has since folded Eyemark) operated under their own names; however, TNN and CMT were merged into MTV Networks almost immediately.
In 2001, Viacom completed its purchase of Black Entertainment Television
(BET). As with TNN/Spike TV and CMT, it was immediately integrated into MTV Networks, causing some outcry among BET workers in the Washington area (where BET was based before the merger). As a result, BET was eventually de-integrated from MTV Networks.
Although a majority economic interest in Viacom was held by independent shareholders, the Redstone family maintained 71-percent voting control of the company through National Amusements' holdings of Viacom's stock.
In 2002, Viacom bought independently-run music channel TMF
, which at the time was broadcasting in Belgium
and the Netherlands
. In June 2004, Viacom bought VIVA Media AG, the German equivalent to MTV. The same month, plans were announced to dispose of Viacom's interest in Blockbuster later that year by means of an exchange offer.
Also in 2002, Viacom acquired the remaining shares of Infinity Broadcasting radio chain. And in April 2003, Viacom acquired the remaining ownership shares of Comedy Central from Time Warner, making Comedy Central integrated into MTV Networks.
In March 2005, Viacom announced plans of looking into splitting the company into two publicly traded companies. The company was not only dealing with a stagnating stock price, but also the rivalry between Les Moonves and Tom Freston
, longtime heads of CBS
and MTV Networks
respectively. After the departure of Mel Karmazin
in 2004, Redstone, who served as Chairman and Chief Executive Officer
, decided to split the offices of President
and Chief Operating Officer
between Moonves and Freston. Redstone was set to retire in the near future, and a split would be a creative solution to the matter of replacing him.
The split was approved by Viacom's board June 14, 2005, took effect December 31, 2005, and effectively reversed the Viacom/CBS merger of 1999. The existing Viacom was renamed CBS Corporation
and was headed by Moonves. It now includes Viacom's "slow growth businesses", namely CBS
, The CW (a merger of UPN
and The WB
), CBS Radio
, Simon & Schuster
, CBS Outdoor
(formerly Viacom Outdoor), Showtime, CBS Television Studios, CBS Television Distribution
and CBS Studios International. These, according to some analysts, were suffocating the growth of the MTV Networks cable businesses. The split effectively made CBS an independent company again.
In addition, CBS Corporation was given Paramount Parks
(which they sold to amusement park
operator Cedar Fair, L.P.
on June 30, 2006) and the CBS College Sports Network.
Additionally, a new spin-off company was created called Viacom
, which was headed by Freston. It comprises MTV Networks, BET Networks, Paramount's movie studio, and Paramount Pictures' home entertainment operations. These businesses are categorized as the high-growth businesses (MTV Networks and BET Networks in particular), and if they were split into a separate company, it could infuse new funds/capital to allow for future acquisitions and expansion.
In September 2006, Redstone fired Freston and named Philippe Dauman
as the new head of Viacom
.
. The present firm known as Viacom
was also established at that date and is a new spin-off company created during the CBS-Viacom split.
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
, Nickelodeon
Nickelodeon (TV channel)
Nickelodeon, often simply called Nick and originally named Pinwheel, is an American children's channel owned by MTV Networks, a subsidiary of Viacom International. The channel is primarily aimed at children ages 7–17, with the exception of their weekday morning program block aimed at preschoolers...
& MTV
MTV
MTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....
, among others. Effective December 31, 2005, this corporate entity changed its name to CBS Corporation
CBS Corporation
CBS Corporation is an American media conglomerate focused on commercial broadcasting, publishing, billboards and television production, with most of its operations in the United States. The President and CEO of the company is Leslie Moonves. Sumner Redstone, owner of National Amusements, is CBS's...
. The present firm known as Viacom
Viacom
Viacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
was also established at that date and is a new spin-off company created during the CBS-Viacom split.
Viacom was highly profitable during the 1970s and 1980s distributing old CBS classics to syndication, including such landmark shows as I Love Lucy
I Love Lucy
I Love Lucy is an American television sitcom starring Lucille Ball, Desi Arnaz, Vivian Vance, and William Frawley. The black-and-white series originally ran from October 15, 1951, to May 6, 1957, on the Columbia Broadcasting System...
, The Andy Griffith Show
The Andy Griffith Show
The Andy Griffith Show is an American sitcom first televised by CBS between October 3, 1960, and April 1, 1968. Andy Griffith portrays a widowed sheriff in the fictional small community of Mayberry, North Carolina...
, The Twilight Zone
The Twilight Zone
The Twilight Zone is an American television anthology series created by Rod Serling. Each episode is a mixture of self-contained drama, psychological thriller, fantasy, science fiction, suspense, or horror, often concluding with a macabre or unexpected twist...
and All in the Family
All in the Family
All in the Family is an American sitcom that was originally broadcast on the CBS television network from January 12, 1971, to April 8, 1979. In September 1979, a new show, Archie Bunker's Place, picked up where All in the Family had ended...
(which was later owned by Embassy
Embassy Pictures
Embassy Pictures Corporation was an independent studio and distributor responsible for such films as The Graduate, The Lion in Winter, This Is Spinal Tap and Escape from New York.-Founding:The company was founded in 1942 by producer Joseph E...
/Columbia Pictures Television
Columbia Pictures Television
Columbia Pictures Television was the second name of the Columbia Pictures television division Screen Gems . The studio changed its name on September 4, 1974.-1974-1982:...
, now called Sony Pictures Television
Sony Pictures Television
Sony Pictures Television, Inc. is an American and global television production/distribution subsidiary of Sony Pictures Entertainment. In turn, the latter is part of the Japanese conglomerate Sony.-Background:...
). They also syndicated shows for others, the biggest examples being The Cosby Show
The Cosby Show
The Cosby Show is an American television situation comedy starring Bill Cosby, which aired for eight seasons on NBC from September 20, 1984 until April 30, 1992...
and Roseanne
Roseanne (TV series)
Roseanne is an American sitcom broadcast on ABC from October 18, 1988 to May 20, 1997. Starring Roseanne Barr, the show revolved around the Conners, an Illinois working class family...
(which were produced by Carsey-Werner Productions
Carsey-Werner Productions
Carsey-Werner Productions is an independent production company founded in 1981 by former ABC writer/producer duo Marcy Carsey and Tom Werner...
. Carsey-Werner eventually got big enough to distribute their own shows, mainly because of the success of these two).
History
The original Viacom began as CBS Films, Inc., the television syndicationTelevision syndication
In broadcasting, syndication is the sale of the right to broadcast radio shows and television shows by multiple radio stations and television stations, without going through a broadcast network, though the process of syndication may conjure up structures like those of a network itself, by its very...
division of CBS
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
established in 1952. The division was spun off
Spin out
A spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business....
and renamed Viacom in 1971, amid new FCC
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
rules forbidding television network
Television network
A television network is a telecommunications network for distribution of television program content, whereby a central operation provides programming to many television stations or pay TV providers. Until the mid-1980s, television programming in most countries of the world was dominated by a small...
s from owning syndication companies (the rules were later repealed).
String of acquisitions
Viacom's first non-programming acquisition came in 1978 when the company purchased the Sonderling Broadcasting chain, giving it radio stations in New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, Houston
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
, and San Francisco
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
, and one television station, WAST (now WNYT) in Albany, New York
Albany, New York
Albany is the capital city of the U.S. state of New York, the seat of Albany County, and the central city of New York's Capital District. Roughly north of New York City, Albany sits on the west bank of the Hudson River, about south of its confluence with the Mohawk River...
.
Later that year, Viacom added WHNB-TV in New Britain, Connecticut
New Britain, Connecticut
New Britain is a city in Hartford County, Connecticut, United States. It is located approximately 9 miles southwest of Hartford. According to 2006 Census Bureau estimates, the population of the city is 71,254....
, changing its call letters to WVIT
WVIT
WVIT, virtual channel 30, is the NBC owned and operated television station for the state of Connecticut, licensed to New Britain. WVIT has its offices and studios located in West Hartford, and transmitter based in Farmington, Connecticut....
. The early 1980s saw Viacom sorting through the Sonderling stations with several being donated, swapped, or being the nucleus for new corporations—for example, WOL
WOL (AM)
WOL is an Urban Talk radio station in Washington, DC. Broadcasting on 1450 AM, this is the flagship radio station of Radio One.The station was Washington's top rated rhythm and blues music station through the 1960s and 1970s...
in Washington launched the Radio One group, which today is the largest African-American-owned broadcasting corporation.
In 1983, Viacom purchased KSLA-TV
KSLA-TV
KSLA, virtual channel 12, is the CBS-affiliated television station for Shreveport, Louisiana and the Ark-La-Tex region. Owned by Raycom Media, it broadcasts its digital signal on UHF channel 17. The sole transmitter is located in Mooringsport, Louisiana...
in Shreveport, Louisiana
Shreveport, Louisiana
Shreveport is the third largest city in Louisiana. It is the principal city of the fourth largest metropolitan area in the state of Louisiana and is the 109th-largest city in the United States....
, and WHEC-TV
WHEC-TV
WHEC-TV, channel 10, is an NBC-affiliated television station located in Rochester, New York, USA. WHEC-TV is owned by Saint Paul, Minnesota-based Hubbard Broadcasting, and broadcasts from a studio/office facility on East Avenue in Downtown Rochester...
in Rochester, New York
Rochester, New York
Rochester is a city in Monroe County, New York, south of Lake Ontario in the United States. Known as The World's Image Centre, it was also once known as The Flour City, and more recently as The Flower City...
, in separate transactions, followed in 1986 with (ironically) CBS-owned KMOX-TV in St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
; with the purchase, that station's call letters were changed to KMOV
KMOV
KMOV, virtual channel 4, is the CBS-affiliated television station in St. Louis, Missouri. KMOV is owned by the Dallas-based Belo Corporation, with its studio and office facilities in St...
.
In 1985, Viacom bought Warner-Amex Satellite Entertainment
Warner-Amex Satellite Entertainment
Warner-Amex Satellite Entertainment Company was a joint venture owned and operated by Warner Communications and American Express that developed and worked on interactive television systems in the late 1970s and initiated several successful cable...
, which owned MTV
MTV
MTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....
and Nickelodeon
Nickelodeon (TV channel)
Nickelodeon, often simply called Nick and originally named Pinwheel, is an American children's channel owned by MTV Networks, a subsidiary of Viacom International. The channel is primarily aimed at children ages 7–17, with the exception of their weekday morning program block aimed at preschoolers...
, renaming the company MTV Networks
MTV Networks
MTV Networks is a division of media conglomerate Viacom that oversees the operations of many television channels and Internet brands, including the original MTV channel in the United States...
. Viacom also received Warner-Amex's share of Viacom/WASEC joint venture Showtime Networks
Showtime Networks
Showtime Networks, Inc. is the corporate division of media conglomerate CBS Corporation.The company was established in 1983 as Showtime/The Movie Channel, Inc. after Viacom and Warner-Amex Satellite Entertainment merged their premium channels, Showtime and The Movie Channel respectively, into one...
, Inc, which included Showtime and The Movie Channel
The Movie Channel
The Movie Channel is an American premium channel owned by Showtime Networks, Inc., a subsidiary of CBS Corporation, which shows mostly movies, as well as special behind-the-scenes features, softcore adult erotica and movie trivia....
.
In 1986, Viacom was bought by movie theater owner National Amusements
National Amusements
National Amusements, Inc. is a privately owned theatre company based in Dedham, Massachusetts, USA. The company was founded in 1936 as the Northeast Theatre Corporation by Michael Redstone....
, which brought Sumner Redstone
Sumner Redstone
Sumner Murray Redstone is an American media magnate. He is the majority owner and Chairman of the Board of the National Amusements theater chain...
to the company. Redstone retained the Viacom name and made a string of large acquisitions in the early 1990s, announcing plans to merge with Paramount Communications, parent of Paramount Pictures
Paramount Pictures
Paramount Pictures Corporation is an American film production and distribution company, located at 5555 Melrose Avenue in Hollywood. Founded in 1912 and currently owned by media conglomerate Viacom, it is America's oldest existing film studio; it is also the last major film studio still...
, in 1993, and buying the Blockbuster Video chain in 1994.
The Blockbuster acquisition gave Viacom access to large television holdings controlled by Aaron Spelling
Aaron Spelling
Aaron Spelling was an American film and television producer. As of 2009, Spelling's eponymous production company Spelling Television holds the record as the most prolific television writer, with 218 producer and executive producer credits...
's company, Spelling Entertainment; along with his own productions, Spelling controlled the pre-1973 ABC
American Broadcasting Company
The American Broadcasting Company is an American commercial broadcasting television network. Created in 1943 from the former NBC Blue radio network, ABC is owned by The Walt Disney Company and is part of Disney-ABC Television Group. Its first broadcast on television was in 1948...
and NBC
NBC
The National Broadcasting Company is an American commercial broadcasting television network and former radio network headquartered in the GE Building in New York City's Rockefeller Center with additional major offices near Los Angeles and in Chicago...
back catalogs by way of Worldvision Enterprises and Republic Pictures
Republic Pictures
Republic Pictures was an independent film production-distribution corporation with studio facilities, operating from 1934 through 1959, and was best known for specializing in westerns, movie serials and B films emphasizing mystery and action....
.
In 1999, Viacom made its biggest acquisition to date by announcing plans to merge with its former parent CBS Corporation. The merger was approved in 2000, bringing cable channels TNN (now Spike TV
Spike TV
Spike is an American cable television channel. It launched on March 7, 1983 as The Nashville Network , a joint venture of WSM, Inc...
) and Country Music Television
Country Music Television
Country Music Television, or CMT, is an American country music-oriented cable television network. Programming includes music videos, taped concerts, movies, biographies of country music stars, game shows, and reality programs...
(CMT) under Viacom's wing, as well as CBS's production units and TV syndicaters Eyemark Entertainment (formerly Group W) and King World. CBS's production unit and King World (which has since folded Eyemark) operated under their own names; however, TNN and CMT were merged into MTV Networks almost immediately.
In 2001, Viacom completed its purchase of Black Entertainment Television
Black Entertainment Television
Black Entertainment Television is an American, Viacom-owned cable network based in Washington, D.C.. Currently viewed in more than 90 million homes worldwide, it is the most prominent television network targeting young Black-American audiences. The network was launched on January 25, 1980, by its...
(BET). As with TNN/Spike TV and CMT, it was immediately integrated into MTV Networks, causing some outcry among BET workers in the Washington area (where BET was based before the merger). As a result, BET was eventually de-integrated from MTV Networks.
Although a majority economic interest in Viacom was held by independent shareholders, the Redstone family maintained 71-percent voting control of the company through National Amusements' holdings of Viacom's stock.
In 2002, Viacom bought independently-run music channel TMF
The Music Factory
The Music Factory is a pop music television channel that operates in Belgium .TMF previously operated channels in the Netherlands , the UK with TMF UK and Australia with . The brand is owned by MTV Networks International...
, which at the time was broadcasting in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
and the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
. In June 2004, Viacom bought VIVA Media AG, the German equivalent to MTV. The same month, plans were announced to dispose of Viacom's interest in Blockbuster later that year by means of an exchange offer.
Also in 2002, Viacom acquired the remaining shares of Infinity Broadcasting radio chain. And in April 2003, Viacom acquired the remaining ownership shares of Comedy Central from Time Warner, making Comedy Central integrated into MTV Networks.
The end of the partnership and the death of the Viacom empire
Tom Freston
Thomas E. Freston is an American entertainment industry executive. He currently is a principal in Firefly3 LLC, a consulting and investment company. Currently he consults Oprah Winfrey, among others....
, longtime heads of CBS
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
and MTV Networks
MTV Networks
MTV Networks is a division of media conglomerate Viacom that oversees the operations of many television channels and Internet brands, including the original MTV channel in the United States...
respectively. After the departure of Mel Karmazin
Mel Karmazin
Melvin Alan "Mel" Karmazin is an American executive. He co-founded and was the president of Infinity Broadcasting and eventually became the president and chief executive officer of CBS. As of 2008, he is the CEO of Sirius XM Radio....
in 2004, Redstone, who served as Chairman and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
, decided to split the offices of President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
and Chief Operating Officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
between Moonves and Freston. Redstone was set to retire in the near future, and a split would be a creative solution to the matter of replacing him.
The split was approved by Viacom's board June 14, 2005, took effect December 31, 2005, and effectively reversed the Viacom/CBS merger of 1999. The existing Viacom was renamed CBS Corporation
CBS Corporation
CBS Corporation is an American media conglomerate focused on commercial broadcasting, publishing, billboards and television production, with most of its operations in the United States. The President and CEO of the company is Leslie Moonves. Sumner Redstone, owner of National Amusements, is CBS's...
and was headed by Moonves. It now includes Viacom's "slow growth businesses", namely CBS
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
, The CW (a merger of UPN
UPN
United Paramount Network was a television network that was broadcast in over 200 markets in the United States from 1995 to 2006. UPN was originally owned by Viacom/Paramount and Chris-Craft Industries, the former of which, through the Paramount Television Group, produced most of the network's...
and The WB
The WB Television Network
The WB Television Network is a former television network in the United States that was launched on January 11, 1995 as a joint venture between Warner Bros. and Tribune Broadcasting. On January 24, 2006, CBS Corporation and Warner Bros...
), CBS Radio
CBS Radio
CBS Radio, Inc., formerly known as Infinity Broadcasting Corporation, is one of the largest owners and operators of radio stations in the United States, third behind main rival Clear Channel Communications and Cumulus Media. CBS Radio owns around 130 radio stations across the country...
, Simon & Schuster
Simon & Schuster
Simon & Schuster, Inc., a division of CBS Corporation, is a publisher founded in New York City in 1924 by Richard L. Simon and M. Lincoln Schuster. It is one of the four largest English-language publishers, alongside Random House, Penguin and HarperCollins...
, CBS Outdoor
CBS Outdoor
CBS Outdoor is the outdoor advertising division of media conglomerate CBS Corporation. It is the third largest outdoor media owner in revenue terms...
(formerly Viacom Outdoor), Showtime, CBS Television Studios, CBS Television Distribution
CBS Television Distribution
CBS Television Distribution is a global television distribution company, formed from the merger of CBS Corporation's two domestic television distribution arms CBS Paramount Domestic Television and King World Productions, including its home entertainment arm CBS Home Entertainment...
and CBS Studios International. These, according to some analysts, were suffocating the growth of the MTV Networks cable businesses. The split effectively made CBS an independent company again.
In addition, CBS Corporation was given Paramount Parks
Paramount Parks
Paramount Parks was an operator of theme parks and attractions, which annually attracted about 13 million patrons. Viacom had assumed control of the company as part of its acquisition of Paramount Pictures in 1994....
(which they sold to amusement park
Amusement park
thumb|Cinderella Castle in [[Magic Kingdom]], [[Disney World]]Amusement and theme parks are terms for a group of entertainment attractions and rides and other events in a location for the enjoyment of large numbers of people...
operator Cedar Fair, L.P.
Cedar Fair, L.P.
Cedar Fair Entertainment Company, legally known as Cedar Fair, L.P., is a publicly traded partnership headquartered at its Cedar Point amusement park in Sandusky, Ohio. The company owns and operates ten amusement parks and seven water parks across North America...
on June 30, 2006) and the CBS College Sports Network.
Additionally, a new spin-off company was created called Viacom
Viacom
Viacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
, which was headed by Freston. It comprises MTV Networks, BET Networks, Paramount's movie studio, and Paramount Pictures' home entertainment operations. These businesses are categorized as the high-growth businesses (MTV Networks and BET Networks in particular), and if they were split into a separate company, it could infuse new funds/capital to allow for future acquisitions and expansion.
In September 2006, Redstone fired Freston and named Philippe Dauman
Philippe Dauman
Philippe Dauman is the President and CEO of Viacom. He has served at this post since September 2006. Dauman is a longtime associate of the company's chairman Sumner Redstone...
as the new head of Viacom
Viacom
Viacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
.
Footnote
Viacom was initially founded in 1971, but was reincorporated in 1985. Effective December 31, 2005, this corporate entity changed its name to CBS CorporationCBS Corporation
CBS Corporation is an American media conglomerate focused on commercial broadcasting, publishing, billboards and television production, with most of its operations in the United States. The President and CEO of the company is Leslie Moonves. Sumner Redstone, owner of National Amusements, is CBS's...
. The present firm known as Viacom
Viacom
Viacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
was also established at that date and is a new spin-off company created during the CBS-Viacom split.