Latest from Next TV in Bakish

Bakish: Redstone Death Doesn’t Change M&A Strategy

michael.farrell@futurenet.com (Mike Farrell) — Wed, 09 Sep 2020 16:48:35 +0000

ViacomCBS CEO Bob Bakish tried to tamp down speculation at an industry conference Wednesday that the death of its largest individual shareholder Sumner Redstone would lead to asset sales, adding that while Redstone’s influence was great, it won't change the company's current path.

Redstone died on Aug. 11. The former Viacom chairman was the controlling shareholder of National Amusements Inc., which holds more than 80% of the voting rights of ViacomCBS. While he was alive, Redstone repeatedly blocked the potential sale of assets -- most notably a move by former CEO Philippe Dauman to sell off an interest in movie studio Paramount Pictures. Upon his death, some have speculated that his daughter, ViacomCBS vice chair Shari Redstone, would be more open to selling off assets or even the entire company.

At the virtual Bank of America Merrill Lynch 2020 Media, Communications and Entertainment Conference on Wednesday, Bakish tried to put an end to any rumors that the ViacomCBS was readying itself for a fire sale.

“Sumner was a true industry titan,” Bakish said at the virtual conference. “His influence in the entertainment landscape cannot be overstated and his guidance and leadership certainly have left a permanent stamp on our company and helped shape who ViacomCBS is today. But as it relates to M&A or asset sales, the fact is nothing changes as a result of his passing.”

Bakis said ViacomCBS remains committed to unlocking the value of its recombination, which was completed back in 2019 and added that there is more to be extracted.

“In regard to asset sales, our business strategy is focused on three interrelated businesses -- studios, networks and streaming," Bakish said. "If an asset falls into one of those three categories, we view it as core to our business. If it doesn't, we view it as a candidate for disposition.”

He noted that ViacomCBS already has identified two assets for sale -- CBS’s Black Rock headquarters in Manhattan and publisher Simon & Schuster.

“The good news is we’ve seen significant interest in both assets,” Bakish continued. “And while we’re not doing anything at the moment, we do look forward to proceeding with those sale processes as market conditions allow.”

CBS Makes Formal Merger Offer to Viacom Committee

Mike Farrell — Tue, 03 Apr 2018 22:32:44 +0000

CBS has made a formal merger offer to a special committee of Viacom’s board of directors, a proposal that values the cable programmer at below its current stock price and is contingent on CBS’s top two executives – chairman and CEO Les Moonves and chief operating officer Joseph Ianniello – remaining in charge of the combined company.

Sources confirmed a report in the Wall Street Journal that said CBS made the offer, basically a ratio of the CBS shares that would be exchanged for Viacom stock, that at least initially values Viacom below its current market capitalization of about $12.5 billion, in the past few days. The senior leadership structure proposed for the new company would be essentially CBS’s current senior leadership. Viacom CEO Bob Bakish is not included in that list but people familiar with the offer say there is no reason he wouldn’t have some role in the combined company. Still, it appears that Bakish, who took the Viacom helm of the troubled network after former CEO Philippe Dauman was ousted after several skirmishes with the controlling Redstone family, is being left out in the cold.

Most analysts expected Moonves to take the top spot – his track record in building CBS into the No. 1 broadcaster alone would ensure that. But its gets trickier as you move down the ranks. Ianniello has proven to be a more than capable No. 2 to Moonves – he was also instrumental in engineering the split in 2005 that cleaved Viacom into two separate entities. But Bakish, a long-time Viacom executive who was tapped for a job nobody wanted, has surprisingly engineered what appears to be the start of a turnaround. Viacom was in turmoil in 2016, with Sumner Redstone battling Dauman, other top executives leaving in droves, ratings falling precipitously and a general consensus that Viacom, once the premier programmer for the youth audience, had lost its mojo.

Bakish wasted little time after he was named permanent CEO in December 2016. By February 2017 he initiated a plan to concentrate on six core networks, invest heavily in original programming and pump new resources into advanced advertising initiatives. Viacom has shown early signs of a recovery – ratings are on the upswing – and Bakish has said that while 2017 was a stabilizing year, he sees growth opportunities ahead. .

A deal that doesn’t include Bakish could be troublesome, according to people familiar with both companies. Shari Redstone hand-picked the former Viacom International executive for the CEO job and dialed back her plans to merge CBS and Viacom in 2016 solely because she wanted to give Bakish more time to execute his plan.

It is quite possible that the CBS proposal is the start of a longer negotiation. While sources said there is no official deadline to consummate a deal, reports have said both sides would like to at least finalize an offer by May, when both companies are scheduled to release quarterly results.

Investors appeared to favor the CBS offer. CBS shares closed at $52.86 each on Tuesday, up $2.15 each or 4.2%, while Viacom shares fell 3.7% ($1.13 each ) to $29.42 per share.

Viacom Stock Soars on CBS Merger Report

Mike Farrell — Fri, 12 Jan 2018 23:23:00 +0000

A report that Viacom is pursuing a recombination with broadcaster CBS sent the programmer’s stock skyward, closing the day at $33.76, up $2.95 each or 9.6%.

According to TheWrap, National Amusements, which has controlling interests in both companies, is setting the stage for putting the two companies back together. But shortly after TheWrap article surfaced, conflicting reports from Reuters and CNBC said that there were no active discussions between the comanies and no bankers had been hired. Those reports sent Viacom stock down about 2% in after-hours trading.

CBS shares closed at $58.83 on Friday, up $1.05 or about 2%. The stock was unchanged in after-hours trading.

CBS and Viacom officials declined to comment on the reports.

Viacom and CBS split in 2005 in an effort to unlock value for both companies. While Viacom was considered to be the early beneficiary of the deal because of its youth-oriented cable networks, its stock has floundered in the past few years as management turmoil, falling ratings and an anemic ad market have pounded the stock. CBS, which has benefitted from strong retransmission consent revenue growth, high ratings and a strong, albeit older skewing customer base, has flourished.

Talk of putting the two companies back together has been on and off for years. The latest was in 2016, when the two canceled talks after Viacom CEO Philippe Dauman was replaced by long –time executive Bob Bakish.

In the past, CBS chairman and CEO Les Moonves has balked at a deal because pairing his company with the lower growth Viacom posed no benefit. Viacom, on the other hand, could gain immensely from being paired in carriage negotiations with the broadcast network.

According to The Wrap, Moonves changed his mind, seeing a combined company as more competitive in the changing media environment. The website predicted he would run the combined company.

Viacom Taps Ogisu as EVP, Chief People Officer

Mike Farrell — Mon, 08 Jan 2018 18:16:00 +0000

Viacom named Fukiko Ogisu to the newly created position of executive vice president and chief people officer, responsible for human resource functions and security services.

Ogisu will report to EVP, general counsel and secretary Christa D’Alimonte.

“As we continue to evolve and grow our business, attracting and retaining the best talent is essential to Viacom’s success,” Viacom CEO Bob Bakish said in a statement. “Fukiko combines a passion for people, knowledge of our brands and businesses, and a deep understanding of how technology and operations can make us work better. She’s the perfect person to help cultivate a diverse, entrepreneurial workforce and ensure our employees can thrive in a quickly changing environment.”

Ogisu joined Viacom in 2008, serving most recently as senior vice president, HR Business Operations and Information Solutions, where she leads worldwide HR business operations, organizational effectiveness, learning and development, employee experience programs and policies, and the company portal. Prior to joining Viacom, Ogisu spent more than a decade at Microsoft in various product and business roles across the company.

“I am honored to have the opportunity to lead Viacom’s incredibly talented human resources and security teams, particularly at this exciting moment for the company,” Ogisu said in a statement. “The evolving media landscape requires a workforce that is more nimble, efficient and innovative than ever before. I look forward to partnering with Viacom’s leaders to prioritize their people-centric objectives and ensure that we support the development and success of our employees by fostering a fulfilling, energizing and safe work environment.”

Viacom Officially Ceases CBS Merger Talks, Names Bakish CEO

Mike Farrell — Mon, 12 Dec 2016 21:45:00 +0000

Just hours after its controlling shareholder asked it to cease merger talks with CBS and threw support to its acting CEO, Viacom made it official, with its board saying it has discontinued exploring the merger and naming Bob Bakish its permanent CEO.

Viacom said it has dissolved the special committee that was tasked with evaluating a a possible CBS merger. Bakish’s appointment as president and CEO and as a member of Viacom’s board of directors is effective immediately.

Viacom named Bakish acting CEO on Nov. 15, the end of a whirlwind period that saw the resignation of embattled CEO Philippe Dauman and the abbreviated tenure of his former lieutenant Tom Dooley.

Viacom’s controlling shareholder National Amusements – it owns 80% of the programmer’s voting interest – requested that it look into recombining with CBS – in which NAI also owns 80% voting control – back in November. CBS and Viacom split in 2006 in an effort to unlock the value of the broadcaster.

Rejoining the two companies had been thought by some as an effort to enhance the value of Viacom, which had fallen on hard times as low ratings and a declining ad market had impacted the youth-oriented programmer.

Bakish, a long-time Viacom executive – he joined the company in 1997 and was most recently CEO of its international unit – had initially been expected to stay in the CEO seat until a more high-profile replacement could be found. But he apparently took the job a lot more seriously – at the UBS Media & Communications conference last week he mapped out a plan that included being more collaborative on the creative side and improving MTV’s rating performance by March.

That apparently impressed the Redstones and the board.

“I am very excited by the strategy Viacom is pursuing under Bob’s leadership, as well as the relentless hard work and passion he has demonstrated not only in his fast start at the helm but in his many years at the company,” Viacom vice chair Shari Redstone said in a statement. “While there is much work to do, I firmly believe that Viacom has a bright future, and that confidence is underpinned by senior management’s commitment to innovation and a more coordinated, global approach to managing our brands.”

While Bakish is getting a vote of confidence, some reports said that Viacom and NAI pulled the plug on the merger after CBS chairman and CEO Les Moonves reportedly demanded that he get voting control of the combined company, which the Redstones were unwilling to do.

Moonves has said repeatedly that CBS will thrive and survive with or without a Viacom deal.

According to a report in the New York Post, CBS could pursue deals with Sony Entertainment or Verizon as vertical integration deals have gained favor in the wake of AT&T’s $108.7 billion proposal to buy Time Warner Inc.

Viacom stock, down about 6% this morning, continued to slide throughout the day and closed at $34.99 each (down 9.4%, or $3.66 per share). CBS fared better, closing at $62.18 each, down 38 cents, or less than1% per share.

“I am honored to be chosen by the Board to lead Viacom, its world-class brands and exceedingly talented people,” Bakish said in a statement. “I believe unequivocally in this company and its potential to create new opportunities and drive greater value as our business evolves and our industry transforms. We've been working very quickly to mobilize the organization, reenergize our culture and address our areas of greatest need. I look forward to continuing to work closely with the Board and our team to build on this momentum, and will share more on our plan and path forward in the New Year.”

National Amusements Nixes CBS-Viacom Merger Talks

Mike Farrell — Mon, 12 Dec 2016 14:49:00 +0000

After months of talks to the contrary, National Amusements, the holding company that houses Sumner Redstone’s 80% voting control of both CBS and Viacom, has asked the boards of both companies to discontinue their merger talks.

In a brief statement, National Amusements said it has asked the boards of directors of both companies to stand down on merger talks.

“Over the past few months, after careful assessment and meetings with the leadership of both companies, we have concluded that this is not the right time to merge the companies,” National Amusements said in a statement.

Viacom shares plunged on the news, down 6% ($2.25 per share) in early trading to $36.37 each. CBS shares fell 3.2% ($1.99) to $60.57 per share.

National Amusements started the talks rolling in September, when it officially asked the boards of both companies to pursue a merger. The idea was that CBS’ retransmission consent power and strong broadcast and cable networks would help bolster Viacom’s sagging fortunes. The once iconic kids’ and teens programmer has struggled with falling ratings and talent defections across its networks.

The troubles helped force out Viacom CEO Philippe Dauman in August and last month the company named long-time executive Bob Bakish as acting CEO. While Bakish was initially thought to be keeping the CEO seat warm while Viacom searched for a more high profile leader, according to reports vice chairman Shari Redstone has thrown her support behind the acting CEO.

According to CNBC, Shari Redstone, one of the main backers of a CBS-Viacom merger, has apparently changed course and is supporting Bakish’s plan to fix the company.

“Following the management changes that the Viacom Board put in place, we have been very impressed with the forward‐looking thinking and strategic plan being pursued under Bob Bakish’s leadership,” National Amusements said in the statement. “We know Viacom has tremendous assets that are currently undervalued, and we are confident that with this new strong management team, the value of these assets can be unleashed. At the same time, CBS continues to perform exceptionally well under Les Moonves, and we have every reason to believe that momentum will continue on a stand‐alone basis.”

Viacom Names Bakish Acting CEO

Mike Farrell — Mon, 31 Oct 2016 21:05:00 +0000

Viacom named long-time executive Robert Bakish as acting president and CEO, taking over for the current temporary chief – Thomas Dooley – effective Nov. 15.

Bakish has been with Viacom since 1997, the past 10 years as head of the programmer's international business. In his new role Bakish will focus on investing in and developing new content, expanding distribution and pursuing strategic opportunities om Viacom’s core businesses.

In addition Viacom said Bakish also will become president and CEO of Viacom Global Entertainment Group, a new unit that will house Viacom’s International Media Networks division with the company’s Music and Entertainment Group, which includes MTV, Comedy Central, VH1, Spike and Logo. In addition, TV Land and CMT will join the Global Entertainment Group portfolio under Bakish.

Viacom’s Kids and Family Group will be renamed the Nickelodeon Group and BET Networks, home of leading brands among African American adults, will continue to function as a dedicated and separate group.

“I look forward to working closely with the board of directors, senior management and our talented and hardworking people around the world to realize the full potential of Viacom’s outstanding assets for the benefit of our audiences, partners and stockholders,” Bakish said in a statement. "Content is the lifeblood of our business and my near-term focus will be to nurture our creative output and brands, ensuring they remain distinctive, differentiated and powerful in an increasingly competitive global media landscape.”

Bakish will be the third Viacom CEO since August, when long-time chief Philippe Dauman stepped down after a heated battle with his former mentor and Viacom’s largest shareholder, Sumner Redstone. Dauman was replaced by Dooley, himself a long-time lieutenant and Viacom employee, who had initially agreed to stay in the top spot until Sept.30. But shortly after that announcement, Dooley, who was also being considered as a permanent CEO replacement, dropped out of the running, saying he would leave the company on Nov. 15.

The timing of that announcement came around the time Redstone and the rest of Viacom’s board of directors were considering whether a merger with its former corporate sister – CBS – would make sense. Earlier this month, Viacom’s board of directors appointed a special committee to investigate whether a merger would make sense.

Bakish joined Viacom in 1997 and has held leadership positions throughout the organization, most recently serving as president and CEO of Viacom International Media Networks (VIMN) and its predecessor company, MTV Networks International, since 2007. In this role, he was responsible for all of Viacom’s media networks and related businesses outside the United States.

“Bob’s record of innovation and achievement at Viacom, combined with his strategic vision and leadership ability, make him highly qualified for this position,” said Viacom chairman Tom May in a statement. “We are determined to move forward aggressively to strengthen Viacom for the future, whether as a stand-alone company or in a potential combination with CBS. There is a great deal of opportunity ahead and Bob is a superb leader to drive this effort, fully empowered to take the actions necessary to position Viacom for success.”

Bakish’s appointment had been expected for several days. The long-time executive also received the blessing of vice chair Shari Redstone.

“To be a successful leader in the industry today requires continuous flexibility, a global perspective, a commitment to innovation and an embrace of change,” Shari Redstone said in a statement. “Bob is an exemplary forward thinker who embodies these traits, embraces disruption and brings teams along with him. Under his leadership our great employees will be supported in their efforts to bring world class content and experiences to our audiences, while we continue to drive improvements in Viacom’s financial performance.”