A leading media analyst has described the potential reconciliation between CBS and Viacom as a “foregone conclusion”.
Rumours of the two companies merging first began in early 2018.
Analyst Michael Nathanson from MoffattNathanson said Viacom could benefit by having its cable networks attached to CBS’ networks during carriage negotiations with operators, and Viacom could use CBS’s TV library content on its cable networks.
“The combination would generate massive cost cuts which CBS could artfully deploy into more original content spend and higher NFL rights fees,” said Nathanson. “In a world where scaled players like Netflix, Disney and Comcast (and even AT&T, for that matter) roam, CBS (as currently constructed) looks too small to keep up with the escalation in content investment going forward.”