The Long Road to a CBS and Viacom Corporate Merger

Corporate Merger

The merging of two companies is a fairly common business practice. Mergers and acquisitions can consolidate company funds or assets, help stimulate growth, bring about a competitive advantage, or increase market share. Though a corporate merger is usually beneficial for both parties involved, it’s important to be aware of the amount of time the process can potentially take. In fact, the recent merger between CBS and Viacom has been brewing for nearly 20 years.

CBS and Viacom have been going back and forth on the idea of a merger since early 2000. During this time, Sumner Redstone, shareholder of National Amusements Inc. holding company made the decision to merge CBS with Viacom. This was fairly short-lived, as Redstone split the two in 2006 due to frustrations with Viacom’s stock.

Earlier this month, the two entertainment networks were brought back together as ViacomCBS. Sumner Redstone’s daughter, Sheri is now the controlling shareholder of CBS and Viacom through National Amusements Inc. and will serve as chairman of ViacomCBS. The merger ultimately ends Sheri’s years-long quest to reshape the Redstones’ media holdings after years of dealing with executive rivalries and ongoing disputes.

The merger of ViacomCBS will bring Viacom’s Paramount Pictures and cable networks like MTV, Nickelodeon, Comedy Central, and BET together with the CBS broadcast network of Showtime, CBS All Access, and others.

The Lengthy Process of a Corporate Merger

Though periods of mere months to accomplish a corporate merger are not uncommon, the merging of two established businesses can take much longer than that as well. The timeframe involved depends on a variety of factors, including the urgency of the parties involved. Ensuring certain steps are set in motion early can make the process go more smoothly. Other tips for keeping a merger running smoothly can include:

  • Having all of the key contracts, records, financial statements, patents, and any other material items in an accessible format for both parties
  • Ensuring a disclosure schedule is kept,
  • Having any necessary presentations or answers to financial questions readily available

Houston Commercial Litigation Attorneys

Ensuring all of your business’ assets are accounted for during a corporate merger can be a daunting task. In the unfortunate event things go awry, having the help of an experienced commercial litigation attorney can certainly ease any stress. At Feldman & Feldman, we treat each case with a unique approach with no one-size-fits-all solutions. If you are facing a business dispute and want to learn more about how we can assist you, contact Feldman & Feldman today to discuss your case.