Paramount Global (formerly ViacomCBS) is an American multinational mass media and entertainment conglomerate controlled by National Amusements and headquartered at One Astor Plaza in Midtown Manhattan in New York City. The company was formed on December 4, 2019, as ViacomCBS Inc. through the merger of the second incarnations of CBS Corporation and Viacom (which were split from the original Viacom on December 31, 2005). The company changed its name to Paramount Global on February 16, 2022, the day after its Q4 earnings presentation.
Paramount Global’s business segments include:
Paramount Pictures:
Paramount Pictures is a film studio that produces and distributes films, television shows, and digital content. The studio is home to some of the most popular film franchises in the world, including the Transformers, Mission: Impossible, and Star Trek franchises.
CBS Entertainment and CBS News:
CBS Entertainment is a television network that produces and broadcasts scripted and reality television shows. CBS News is a news division that produces and broadcasts news programs, documentaries, and investigative reporting.
ViacomCBS operates an extensive network of television channels that cater to a diverse range of audiences and interests. Channels like MTV cater to youth and pop culture, Nickelodeon is dedicated to children’s programming, while CBS is a major player in news, sports, and general entertainment. The company’s networks collectively reach millions of households globally.
Showtime Networks:
Showtime Networks is a premium cable television network that produces and broadcasts original scripted and non-scripted programming. Showtime is home to some of the most popular television shows in the world, including Homeland, Billions, and The Handmaid’s Tale.
Paramount+:
Paramount+ is a streaming service that offers a library of movies, television shows, and original content. Paramount+ is home to some of the most popular films and television shows from Paramount Pictures, CBS Entertainment, Showtime Networks, and other brands.
In the age of digital media consumption, ViacomCBS has ventured into the streaming arena with its own platforms. Paramount+, the conglomerate’s streaming service, offers a vast library of content from various brands under the ViacomCBS umbrella. This includes original programming, classic TV shows, and a selection of films.
Other businesses:
Paramount Global also owns a number of other businesses, including Simon & Schuster, a publishing company; Paramount Music, a music publishing company; and Paramount Licensing, a licensing company.
Paramount Global is a major player in the media and entertainment industry. The company has a diverse portfolio of businesses that reach audiences around the world. Paramount Global is committed to creating and distributing premium content that entertains, informs, and inspires audiences.
Here are some of the company’s achievements:
- In 2021, Paramount Global was ranked as the world’s third largest media and entertainment company by revenue.
- The company’s streaming service, Paramount+, has over 62 million subscribers worldwide.
- Paramount Global’s film studio, Paramount Pictures, has released some of the most successful films of all time, including Titanic, Avatar, and Star Wars: Episode VII – The Force Awakens.
- The company’s television networks, CBS Entertainment and Showtime Networks, are home to some of the most popular television shows in the world, including The Big Bang Theory, NCIS, and The Walking Dead.
Paramount Global is a well-established company with a strong track record of success. The company is well-positioned to continue to grow and thrive in the years to come.
CBS Corporation and Viacom Merger – Formation of Paramount Global
The merger between Viacom and CBS Corporation took place in December 2019, reuniting two major media companies that had previously split in 2006. The merger resulted in the formation of ViacomCBS Inc., a media conglomerate with a diverse portfolio of assets spanning television, film, streaming, and more. Here’s a detailed overview of the merger:
Background:
Viacom and CBS Corporation were both established media companies with significant influence in the entertainment industry. They were originally part of a single company called Viacom, which was formed in 1971. However, in 2006, Viacom split into two separate entities: Viacom and CBS Corporation. The split was intended to unlock the individual growth potentials of the two companies and provide greater focus on their respective businesses.
Motivation for the Merger:
The media landscape had undergone significant changes since the split in 2006, with the rise of digital streaming, changes in consumer preferences, and increased competition. These shifts led to a reconsideration of the advantages of a combined entity. The Viacom and CBS merger aimed to create a media powerhouse that could navigate the evolving industry landscape more effectively, capitalize on synergies, and enhance their competitive position in the market.
Merger Process:
The merger process involved negotiations between the leadership teams of both Viacom and CBS Corporation. The primary objective was to determine the terms of the merger, including the ownership structure of the new entity, management positions, and the integration of various assets and operations.
Key Points of the Merger:
Formation of ViacomCBS Inc.: The merger resulted in the formation of ViacomCBS Inc., a new media conglomerate that combined the assets of both Viacom and CBS Corporation. The new company retained the existing stock symbols of VIAC for the NASDAQ stock exchange.
Leadership and Governance: Bob Bakish, who was the President and CEO of Viacom, became the President and CEO of ViacomCBS Inc. Shari Redstone, previously the Vice Chair of CBS and Viacom, became the Chair of the new company.
Portfolio Synergies: The merger aimed to leverage the complementary strengths of Viacom and CBS Corporation. Viacom brought its extensive cable networks, including MTV, Nickelodeon, and Comedy Central, while CBS Corporation contributed its flagship CBS network, Showtime, and CBS Television Studios.
Streaming Strategy: The merger allowed ViacomCBS to strengthen its position in the streaming market. The conglomerate introduced Paramount+, its streaming service that combined content from both Viacom and CBS properties. Paramount+ aimed to compete with other streaming giants by offering a diverse library of content.
Content Creation: The merger also united Viacom’s film studio, Paramount Pictures, with CBS Television Studios, expanding the content creation capabilities of the new company across both television and film.
International Presence: The merger enhanced ViacomCBS’s international presence, allowing it to distribute its content and brands to a global audience more effectively.
Impact and Future Direction:
The ViacomCBS merger reflected the changing dynamics of the media industry and the increasing importance of digital streaming services. The new company aimed to capitalize on its extensive content library, diverse brands, and combined expertise to create compelling content for a wide range of audiences.
Who owns Paramount Global?
Paramount Global is owned by National Amusements, a privately held holding company controlled by the Redstone family. Sumner Redstone, the former chairman of ViacomCBS, was the controlling shareholder of National Amusements until his death in 2020. His daughter, Shari Redstone, is now the controlling shareholder of National Amusements and Paramount Global.
National Amusements owns a controlling stake in Paramount Global through its ownership of Class B voting shares. Class B shares have 10 times the voting power of Class A shares, which are the type of shares that are publicly traded. This gives National Amusements control of Paramount Global, even though it owns a minority stake in the company.
Other shareholders in Paramount Global include:
The Vanguard Group: Vanguard is an investment management company that owns 7.7% of Paramount Global’s shares.
BlackRock: BlackRock is another investment management company that owns 6.9% of Paramount Global’s shares.
State Street Corporation: State Street Corporation is a financial services company that owns 5.7% of Paramount Global’s shares.
The Capital Group Companies: The Capital Group Companies is an investment management company that owns 5.1% of Paramount Global’s shares.
Paramount Global is a publicly traded company, but it is effectively controlled by National Amusements and the Redstone family. This gives the Redstone family a significant amount of power over the company’s direction and future.
Also Read: Magic Kingdom: A Peek into Disney Global Entertainment Empire
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