Ever wondered who’s behind your favorite TV network? CBS has been a household name for decades, but its ownership has changed hands several times throughout its long history.
CBS is currently owned by Paramount Global (formerly ViacomCBS). This company was formed when CBS Corporation and Viacom merged in 2019.
The story of CBS ownership is fascinating. The company began as United Independent Broadcasters in 1927, later changing its name to Columbia Broadcasting System.
Over the years, it grew into a media powerhouse. Behind the scenes, National Amusements, a company established by Sumner Redstone, took control of CBS and has remained a major shareholder through various corporate reorganizations.
The network has evolved significantly over time. For example, it sold assets like CBS Radio to Entercom in 2017 while expanding in other areas.
Today, CBS remains one of America’s broadcasting giants under the Paramount Global umbrella, competing with other major networks in television, news, and streaming entertainment.
Key Takeaways
- CBS is owned by Paramount Global, created when CBS Corporation and Viacom merged in 2019.
- National Amusements remains a significant shareholder in the company that controls CBS.
- The network has transformed from a radio broadcaster into a multimedia entertainment company with diverse assets in television and streaming.
History of CBS
CBS has changed hands multiple times since its founding, evolving from a radio network into a major media conglomerate. The network’s ownership history reflects the changing landscape of American broadcasting and corporate consolidation in media.
Founding and Early Years
CBS began in 1927 as United Independent Broadcasters, Inc., a radio network founded in Chicago. The company changed its name to Columbia Broadcasting System just a year later.
William S. Paley purchased a controlling interest in the struggling network in 1928. This move would transform the company’s fortunes dramatically.
Under Paley’s leadership, CBS grew from a small collection of radio stations into a broadcasting powerhouse. He guided the company for nearly five decades.
The network expanded into television after World War II. This expansion helped CBS become known as the “Tiffany Network” due to its high-quality programming and news coverage.
Major Milestones and Acquisitions
In 1995, Westinghouse Electric Corporation acquired CBS, marking a significant ownership change. After the acquisition, Westinghouse eventually renamed itself as CBS Corporation.
The company didn’t remain independent for long. In 2000, Viacom purchased CBS Corporation, bringing the network under the umbrella of a larger media conglomerate.
The CBS-Viacom relationship has been complex. The companies separated in 2006, only to merge again years later.
Unlike competitors such as 21st Century Fox, CBS has maintained its distinct identity through various corporate restructurings. These ownership changes reflect the broader trend of consolidation in American media.
Ownership
CBS ownership has changed hands several times throughout its history but remains tied to the Redstone family through National Amusements. The company’s unique voting structure gives the Redstone family significant control despite owning a relatively small percentage of total shares.
Current Ownership Structure
CBS is owned by Paramount Global, formerly ViacomCBS, which emerged from the 2019 re-merger of CBS Corporation and Viacom. The parent company of CBS is technically National Amusements, which holds the majority of voting shares in Paramount Global. National Amusements isn’t a typical media company – it started as a movie theater chain!
According to financial data, National Amusements controls about 5.11% of the company’s shares, but these are special voting shares that give it outsized control. Other major shareholders include investment firms like Invesco Advisers, which owns about 3.29% of shares.
In a recent development, Paramount Global (CBS’s parent company) has agreed to merge with Skydance Media. This deal will create a new structure but likely maintain the core ownership pattern.
Redstone Family Influence
The Redstone family has been the controlling force behind CBS for decades. Sumner Redstone, who passed away in 2020, built the media empire through National Amusements, the family company founded by his father.
Today, Shari Redstone, Sumner’s daughter, serves as the chairperson of Paramount Global and controls National Amusements. She holds significant decision-making power through the Sumner M. Redstone National Amusements Trust, which maintains voting control.
The family’s influence comes from their clever use of a dual-class share structure. While they own a relatively small percentage of actual shares, they control nearly 80% of the voting power. This arrangement has allowed the Redstone family to maintain tight control over major decisions like:
- Executive appointments
- Merger approvals
- Company direction
- Strategic partnerships
This unusual ownership structure has sometimes created tension with other shareholders who have less say in company governance.
CBS and Viacom Merger
The CBS and Viacom merger represents one of the most significant media consolidations in recent history, bringing together two entertainment powerhouses under shared ownership after years of separation.
Pre-Merger History
CBS and Viacom have a complicated relationship spanning decades. The companies were originally together until 2006, when they split into separate entities. Before that, Viacom had actually purchased CBS in a major deal worth $36.5 billion back in 1999.
Both companies remained under the control of National Amusements, the theater company owned by the Redstone family. This common ownership made their eventual reunion possible.
The path to reunification wasn’t smooth. Leadership conflicts, particularly involving CBS’s then-CEO Leslie Moonves, created roadblocks. When Moonves departed CBS amid controversy, Joseph Ianniello stepped in as acting CEO, helping pave the way for merger talks to advance.
Several previous attempts to recombine the companies had failed before the successful 2019 negotiations began.
Impact of the Merger
The 2019 merger created a larger media entity called ViacomCBS (now Paramount Global). The deal, valued at around $30 billion, combined CBS’s broadcast strength with Viacom’s cable networks and Paramount Pictures.
Under the agreement, CBS shareholders received about 61% of the combined company, while Viacom shareholders got approximately 39%.
Bob Bakish, who had been leading Viacom, became CEO of the merged company. The merger aimed to create a stronger competitor in the streaming wars against Netflix, Disney+, and other platforms.
The combined entity gained control of valuable assets including:
- CBS broadcast network
- Paramount Pictures
- MTV, Nickelodeon, and other cable channels
- Showtime
- CBS All Access (now Paramount+)
This consolidation represented the Redstone family’s vision for competing in the changing media landscape.
CBS in the Entertainment Industry
CBS has evolved from a traditional broadcast network to become a major player in today’s entertainment landscape. The network continues to influence television while expanding into digital platforms to reach viewers wherever they watch content.
Television Network Impact
CBS has been a flagship property in American commercial television for decades. The network has consistently delivered popular programming that attracts millions of viewers across the country.
CBS’s strength lies in its broad appeal programming strategy. Shows like NCIS, Young Sheldon, and The Big Bang Theory have dominated ratings for years, establishing the network as a powerhouse in primetime television.
The network’s influence extends beyond entertainment to news and sports. CBS News provides trusted journalism, while the network’s sports division broadcasts major events like the NFL and NCAA March Madness.
CBS programming typically targets a wide demographic, which has helped it maintain strong viewership even as the entertainment industry faces fragmentation.
Expansion to Streaming Services
Recognizing the shift in viewing habits, CBS launched its streaming service initially known as CBS All Access. This platform later evolved as part of Paramount’s broader entertainment strategy.
The streaming service became home to exclusive content, including new Star Trek series that have revitalized the beloved franchise. Shows like Star Trek: Discovery and Star Trek: Picard brought fresh narratives to longtime fans while attracting new viewers.
CBS’s digital expansion represents its adaptation to changing consumer preferences. The network understood that streaming would become essential to remain competitive in the entertainment industry.
Original programming developed specifically for streaming has allowed CBS to experiment with different formats and storytelling approaches. This strategy has helped the network reach younger audiences who primarily consume content online.
CBS’s Media Assets and Subsidiaries
CBS Corporation has built a diverse portfolio of entertainment assets through decades of media consolidation. These holdings span traditional television, digital platforms, and content production studios that reach audiences across multiple demographics.
Key Television Networks and Channels
CBS operates several major television networks beyond its flagship CBS broadcast channel. The company’s portfolio includes Showtime, the premium cable network known for critically acclaimed series like “Homeland” and “Billions.”
After merging with Viacom, CBS expanded its television footprint significantly. This merger brought popular cable networks like MTV, BET, Nickelodeon, and Comedy Central under the same corporate umbrella.
The company’s television production arm, CBS Studios, creates content not only for its own networks but also produces shows for other platforms. This division includes CBS Television Service and CBS Survivor Productions, which develops the long-running reality competition show.
Streaming Platforms and Digital Services
CBS has embraced the digital revolution through several streaming initiatives. Their platform, formerly known as CBS All Access, rebranded to Paramount+ in 2021. It offers original content alongside the vast library of shows from CBS’s broadcast history.
Pluto TV, a free ad-supported streaming service, joined the company’s digital portfolio through the Viacom merger. This platform provides viewers with hundreds of channels of content without subscription fees.
The company also operates CBS Interactive, which manages the company’s digital properties and gaming assets. This division oversees CBS’s official website and apps that allow viewers to stream CBS content on various devices.
Showtime’s standalone streaming service complements these offerings by providing premium content to subscribers who prefer to access programming without a traditional cable package.
Financial Overview of CBS
CBS has established itself as a key player in the media landscape with diverse revenue streams and growing digital subscriber base. The company’s financial structure reflects both traditional broadcasting strength and digital transformation efforts.
Revenue Streams
CBS generates income through several important channels. Commercial broadcasting remains a cornerstone of their business model, bringing in advertising dollars from their television network programming.
Television production is another major revenue driver, creating content both for their own platforms and for licensing to other networks and streaming services.
Publishing activities contribute to the financial mix, though less prominently than their broadcasting operations. These diverse income sources help buffer against market fluctuations.
The company’s quarterly financial statements show how these various streams combine to create their overall revenue picture. According to SEC filings, management regularly analyzes these different revenue categories to guide strategic decisions.
Subscriber Growth and Metrics
CBS has been focusing on growing its digital subscription services to compete in the streaming era. Their subscriber metrics are closely watched by investors as indicators of future revenue potential.
The company tracks several key performance indicators:
- Total subscriber numbers
- Monthly active users
- Subscription revenue growth
- Churn rate (how many subscribers leave)
As part of Paramount Global, CBS now integrates its subscriber strategy with the broader corporate approach to streaming services. This has helped expand their digital footprint significantly.
Quarterly reports to shareholders typically highlight subscriber growth as a sign of the company’s successful digital transformation. This growth has become increasingly important as traditional TV viewership patterns continue to evolve.
Competitive Landscape
CBS operates in a fiercely competitive media environment where traditional networks face challenges from both established media conglomerates and newer streaming platforms. The company must constantly evolve its strategies to maintain relevance and market share.
Comparison with Other Media Giants
CBS competes with several major media companies in the broadcasting space. NBC and FOX are direct competitors in network television, fighting for viewers and advertising dollars. NBC, owned by NBCUniversal, brings the power of Comcast’s resources to the competition.
Fox Corporation has positioned itself as a formidable rival with strong sports programming and news coverage. Meanwhile, Disney controls ABC, adding another powerful competitor to the mix.
Nexstar Media Group actually operates the largest number of CBS stations, though these are affiliates rather than owned-and-operated stations. This creates an interesting dynamic where CBS must maintain positive relationships with the companies broadcasting their content.
Warner Bros. Discovery (owner of CNN and HBO) represents another major competitor with extensive content libraries and distribution networks.
The Battle of the Streaming Services
The streaming arena has intensified competitive pressures for CBS. Paramount+ (formerly CBS All Access) faces tough competition from established giants like Netflix, Disney+, and Amazon Prime Video.
These streaming competitors have massive content budgets:
| Streaming Service | Parent Company | Content Spend (Approx.) |
|---|---|---|
| Netflix | Netflix, Inc. | $17 billion |
| Disney+ | Walt Disney Co | $8 billion |
| HBO Max | Warner Bros | $4 billion |
| Paramount+ | Paramount | $3 billion |
Smaller but significant competitors include Apple TV+, Peacock (NBCUniversal), and specialty services like Starz. Each platform fights for subscriber dollars with exclusive content and competitive pricing.
The streaming battle has forced CBS to invest heavily in original programming while maintaining its traditional broadcast offerings. This dual approach stretches resources but helps the company maintain relevance in both markets.
Strategic Moves and Future Outlook
CBS faces significant changes as ownership discussions continue between Paramount Global and potential buyers like Skydance Media. These developments are reshaping the network’s content strategy and technological direction in a rapidly evolving media landscape.
Content Acquisition and Partnerships
CBS has been actively pursuing strategic content partnerships to strengthen its position in the competitive media market. The network continues to invest in popular franchises like NCIS and FBI while exploring new programming opportunities.
Larry Ellison, who would have voting control of the new Paramount if the Skydance deal succeeds, has expressed plans to “revitalize” CBS. This could mean fresh investments in content and talent.
The network also faces challenges with its affiliate relationships. The potential ownership change raises questions about affiliate payments, which form a crucial revenue stream for CBS.
Regional partnerships with local stations, particularly those operated by Nexstar Media Group and Tegna Media, remain vital to CBS’s distribution strategy. These relationships help the network maintain its nationwide reach.
Innovations in Streaming and Technology
CBS has been expanding its digital footprint through Paramount+, its flagship streaming service. This platform represents the network’s response to changing viewer habits and the decline of traditional cable TV.
Technology investments focus on improving the streaming experience. At the same time, CBS aims to maintain the traditional broadcast quality that its viewers expect. The network has been enhancing its mobile apps and smart TV interfaces to reach viewers across multiple devices.
Data analytics has become increasingly important for CBS’s content decisions. The network uses viewer metrics to guide programming choices and advertising strategies across both streaming and traditional broadcasts.
If the Skydance acquisition proceeds, industry experts anticipate increased technology investments. This could potentially accelerate CBS’s digital transformation as they compete with tech-savvy rivals like Netflix and Disney+.
