Curious about who controls one of America’s biggest media companies? The answer isn’t as straightforward as you might think. National Amusements, a theater company led by businessman Sumner Redstone, was the controlling shareholder of Viacom and CBS. This ownership structure shaped much of the company’s history and business decisions over the years.
In 2019, a significant change occurred when Viacom and CBS reunited after a period of separation. The merger created a larger media entity, with CBS shareholders owning about 61% of the combined company and Viacom shareholders owning approximately 39%. Following this merger, the company operated as ViacomCBS before rebranding as Paramount Global in 2022.
Key Takeaways
- National Amusements, led by Sumner Redstone, was the controlling shareholder of Viacom before its merger with CBS.
- The 2019 merger between Viacom and CBS created a united media company that later became Paramount Global.
- The entertainment conglomerate now operates with a diverse portfolio of television, film, and digital media assets under unified ownership.
History and Ownership Structure
Viacom’s ownership has evolved through a complex series of splits, mergers, and corporate restructuring since its beginnings. The company’s fate has been closely tied to National Amusements, the theater company owned by the Redstone family.
Viacom’s Founding and Growth
Viacom started in 1970 as a spin-off from CBS to comply with Federal Communications Commission (FCC) regulations. This new company initially managed CBS’s cable television and syndication assets.
During the 1980s, Viacom began expanding its media footprint significantly. The company acquired several valuable properties that would become core parts of its business, including MTV Networks.
In 1987, National Amusements acquired Viacom, marking the beginning of the Redstone family’s control over the company. This acquisition placed Sumner Redstone at the helm of what would become a growing media empire.
Viacom continued its expansion through the 1990s, adding channels like Nickelodeon and Comedy Central to its portfolio. These acquisitions helped transform Viacom into a major player in the entertainment industry.
The Role of National Amusements
National Amusements, a theater company founded by Michael Redstone, has been the controlling shareholder of Viacom for decades. The company serves as the investment vehicle for the Redstone family’s media empire.
Sumner Redstone, who took over National Amusements from his father, became the driving force behind Viacom’s business strategy. His famous “content is king” philosophy guided many of the company’s acquisition decisions.
Through National Amusements, the Redstone family maintained voting control of Viacom even while owning a minority of total shares. This structure allowed them to make major decisions about the company’s direction despite owning less than a majority of economic interest.
The unique ownership arrangement gave the Redstones significant influence over Viacom’s business moves, executive appointments, and corporate structure changes throughout the years.
Evolution Through Mergers and Acquisitions
In 1999, Viacom made a bold move by acquiring its former parent company CBS in a deal worth $35.6 billion. This reunion created one of the world’s largest media conglomerates.
The combined company didn’t stay together long. On December 31, 2005, Viacom split into two separate companies: CBS Corporation and a new, smaller Viacom. Both remained under National Amusements’ control.
The split was designed to create two companies with different growth strategies. CBS focused on broadcasting and publishing, while the new Viacom concentrated on cable networks and film production.
In 2019, the companies came full circle when Viacom and CBS merged again to form ViacomCBS (later renamed Paramount Global). This recombination aimed to create a stronger entity capable of competing in the evolving media landscape dominated by streaming services.
Recent Developments
The media landscape has changed dramatically for Viacom in recent years, with major corporate restructuring and strategic shifts to compete in the streaming era.
The CBS and Viacom Merger
CBS and Viacom, both controlled by National Amusements under the Redstone family, merged back together in 2019. The merger created a stronger media company to compete with emerging streaming giants like Netflix and Disney+.
After operating as separate entities since 2006, the reunification aimed to combine Viacom’s youth-focused cable networks with CBS’s broadcasting power. This created a more diverse content portfolio spanning news, sports, and entertainment.
In February 2022, the company made another big change. ViacomCBS officially rebranded as Paramount Global, or simply “Paramount.” This name change reflected the company’s focus on its iconic film studio and streaming ambitions.
Impact of Streaming Trends on ViacomCBS
Streaming has dramatically changed how Paramount approaches content distribution. The company expanded its streaming services with Paramount+ to compete against Netflix, Disney+, HBO Max, and Amazon Prime Video.
Paramount Global has invested heavily in original content for its platforms. Shows like “Star Trek: Discovery” and films from the Paramount library became exclusives to attract subscribers.
The company missed profit forecasts during its transition period but emphasized streaming growth as key to its future. Like competitors, Paramount shifted resources from traditional cable to direct-to-consumer models.
Paramount+ has faced challenges competing with larger rivals like Netflix and Disney, who have more subscribers and bigger content budgets. However, its library of recognizable franchises has helped it carve out a space in the crowded market.
Strategic Moves in the Entertainment Industry
In a significant development, Skydance Media and Paramount Global signed a definitive agreement to strengthen Paramount as a “world-class media and technology enterprise.” This deal represented a major strategic shift for the company.
Paramount has focused on leveraging its extensive intellectual property across platforms. Franchises like “Mission: Impossible,” “Transformers,” and “SpongeBob SquarePants” continue to drive value across theatrical, streaming, and merchandise channels.
The company has also expanded international production to create local content for global audiences. This strategy mirrors approaches from Netflix and Amazon, who’ve found success with region-specific programming.
Sports content, particularly through CBS Sports, remains a key differentiator for Paramount against some streaming competitors like Netflix. Live events continue to draw valuable advertising dollars in an era of declining traditional TV viewership.
Viacom’s Business Portfolio
Viacom operates a diverse portfolio of entertainment assets spanning television, film, and digital platforms. The company has built its business around creating and distributing content across multiple channels to reach audiences worldwide.
Television Networks and Programming
Viacom’s television division represents one of its strongest business segments with several popular networks that target different demographics. MTV focuses on youth culture with reality shows and music programming that has defined generations of viewers.
Nickelodeon dominates children’s entertainment with animated series, live-action shows, and educational content that has created beloved characters like SpongeBob SquarePants.
Comedy Central delivers humor-focused programming including standout shows like South Park and The Daily Show, establishing itself as the home for comedy entertainment.
Other notable networks in Viacom’s television portfolio include BET, which focuses on African American culture and entertainment, and VH1, which features music and pop culture programming.
Viacom also produces music through labels like Nick Records and Comedy Central Records, extending their brands beyond television.
Film Production and Distribution
The crown jewel of Viacom’s film business is Paramount Pictures, one of Hollywood’s oldest and most prestigious studios. Paramount has created iconic film franchises including Mission: Impossible, Transformers, and Star Trek.
The studio operates several production divisions that create content for different audiences, including Paramount Animation for family-friendly features and Paramount Players for content targeting younger viewers.
Paramount’s film library contains thousands of titles spanning decades of cinema history, providing a valuable asset for content licensing and distribution opportunities across multiple platforms.
The company’s distribution network reaches theaters worldwide, allowing for global releases of major films and maximizing box office potential across international markets.
Digital and Streaming Services
Viacom has expanded aggressively into digital and streaming services to adapt to changing viewer habits. Pluto TV, a free streaming service acquired by Viacom, offers hundreds of channels of content without requiring subscriptions.
The company also developed Paramount+ (previously CBS All Access) as its flagship subscription streaming service, featuring original programming, live sports, and content from across its television and film libraries.
Viacom’s digital strategy includes creating original content specifically for online platforms and social media to reach younger audiences who consume entertainment primarily through digital channels.
The company has formed strategic partnerships with other streaming platforms to license content while maintaining its own direct-to-consumer relationships through its proprietary services.
Content Strategy and Intellectual Property
Paramount Global (formerly ViacomCBS) maintains a vast library of intellectual property across its many media brands. The company leverages this content through multiple distribution channels while continuing to develop new original programming that appeals to diverse audiences.
Emphasis on Original Content
Paramount Global has invested heavily in creating original content across its networks and streaming platforms. The company produces shows and movies that cater to different demographics and viewing preferences.
Their strategy focuses on developing content that can work across multiple platforms. For example, many shows debut on traditional cable networks before moving to Paramount+ streaming service.
The company has one of the largest libraries of iconic intellectual property in the entertainment industry. This gives them a competitive advantage when creating new content based on established franchises.
Original programming helps differentiate Paramount’s offerings in a crowded media landscape. Shows developed in-house also provide greater control over distribution rights and merchandising opportunities.
Licensing and Syndication
Licensing content to other platforms represents a significant revenue stream for Paramount Global. The company strategically sells rights to its shows and movies to other networks and streaming services worldwide.
Some of their most popular properties generate substantial income through syndication deals. These arrangements allow their content to reach audiences beyond their own platforms.
The company must balance the value of exclusive content on their own services against the revenue potential of licensing. This decision-making process has become more complex in the streaming era.
International licensing has become increasingly important to the company’s growth strategy. Many Paramount-owned shows appear on different platforms in different countries based on regional licensing agreements.
Iconic Franchises and Shows
Paramount Global owns some of the most recognizable entertainment franchises in the world. SpongeBob SquarePants, created for Nickelodeon in 1999, has become a global phenomenon. It spans TV shows, movies, and merchandise.
South Park, produced for Comedy Central, has been running since 1997. The show continues to attract viewers with its satirical take on current events. The show’s creators signed a massive deal to produce content exclusively for Paramount+.
Other valuable franchises include Star Trek, Mission Impossible, and numerous MTV reality shows. These properties have loyal fan bases that follow content across different platforms.
The company’s animation studios continue to develop new characters while extending the life of established ones. This approach helps Paramount appeal to new generations of viewers while maintaining connections to their classic properties.
Competitive Landscape
ViacomCBS operates in a crowded media environment where traditional giants and tech newcomers battle for viewers’ attention. The company leverages its extensive content library and broadcast networks to maintain its position in this rapidly evolving landscape.
ViacomCBS vs Traditional Media Companies
ViacomCBS faces stiff competition from other legacy media powerhouses like Disney and Sony Pictures. With an estimated 21,900 employees, ViacomCBS has built a significant market presence in multiple segments of the entertainment industry.
Disney presents perhaps the strongest traditional competitor with its unmatched brand recognition and diverse portfolio spanning theme parks, movies, and television networks. The House of Mouse has aggressively expanded its direct-to-consumer offerings in recent years.
Meanwhile, companies like Sony Pictures compete directly with ViacomCBS’s Paramount Pictures for theatrical audiences and content production deals. These legacy media companies are all fighting to transition their business models to the digital age while maintaining their traditional revenue streams.
Rivalry with New-Age Streaming Services
The streaming wars have intensified competition for ViacomCBS. Netflix remains the dominant force with its massive subscriber base and hefty content budget.
Amazon Prime Video leverages its parent company’s e-commerce ecosystem to attract and retain viewers.
Apple TV+ has entered the scene with premium original programming and deep pockets to fund high-profile productions.
HBO Max (owned by WarnerMedia) boasts a prestigious content library that directly competes with ViacomCBS’s offerings.
These tech-focused competitors have changed audience expectations around content delivery and consumption. ViacomCBS has responded by launching its own streaming service while maintaining its various competitive advantages, including ownership of popular channels like MTV and Comedy Central.
The company must carefully balance its traditional cable business while growing its streaming presence to remain relevant in this segment.
Collaborations and Partnerships
To strengthen its position, ViacomCBS has pursued strategic collaborations across the entertainment industry. These partnerships help the company expand its content reach and technological capabilities.
The 2019 merger between Viacom and CBS itself represents a significant partnership that reunited these companies after their 2006 split. This combination brought together complementary assets from both organizations.
ViacomCBS has also formed content-sharing agreements with other streaming platforms. These agreements involve licensing some of its vast library of shows and movies while reserving others exclusively for its own services.
Technology partnerships have helped ViacomCBS improve its digital distribution capabilities. By collaborating with established tech firms, the company has enhanced its ability to deliver content across multiple platforms and devices.
Leadership
Viacom’s leadership structure reflects its complex corporate history and the significant influence of the Redstone family through National Amusements, the theater company that serves as the controlling shareholder.
Executive Team Overview
The executive leadership at what was Viacom has evolved significantly over the years. Bob Bakish played a crucial role in the company’s development, joining Viacom in 1997 and rising through various senior positions.
Bakish eventually became CEO of Viacom in 2016 and continued in leadership through corporate changes. The current leadership team includes several key executives who manage different aspects of what is now Paramount Global.
The executive roster features names like George Cheeks, Chris McCarthy, and Brian Robbins, who lead various divisions within the company. Additional executive team members include Alex Berkett, Naveen Chopra, Dan Cohen, and several others who oversee specific operational areas.
Shari Redstone’s Influence
Shari Redstone stands as one of the most influential figures in Viacom’s leadership story. As the daughter of media mogul Sumner Redstone, she has wielded significant control over Viacom’s direction through National Amusements, the family’s holding company.
Her power grew substantially following corporate restructuring and her father’s declining health. Shari played a pivotal role in the decisions regarding Viacom’s corporate strategy, including the significant merger activities.
Under her leadership influence, the company underwent major transformations. She was instrumental in the reunification of Viacom and CBS, companies that had previously split under her father’s direction.
Shari continues to shape the company’s future as the chairperson of what is now Paramount Global, maintaining the Redstone family’s controlling interest through National Amusements.
Future Outlook
Paramount (formerly ViacomCBS) faces exciting challenges in the rapidly evolving media landscape. The company is positioning itself strategically for growth through media partnerships, innovative content creation, and a strong focus on streaming services.
Predictions for Media Consolidation
The media industry will likely see more consolidation in the coming years, with Paramount playing a significant role. As streaming continues to dominate, smaller media companies might struggle to compete independently. This could create opportunities for Paramount to expand through strategic acquisitions.
Experts predict that Paramount might form more partnerships with tech companies to enhance content distribution. These collaborations could help the company reach wider audiences across multiple platforms.
The renaming to Paramount signals the company’s intention to unify its brands under one recognizable name. This could potentially make future acquisitions more seamless to integrate.
International expansion will become increasingly important as the company looks to compete with other global media giants.
Innovations in Content Creation
Paramount is expected to invest heavily in original content creation to differentiate itself in the crowded entertainment landscape. The company’s vast library of intellectual property provides a foundation for developing new shows and movies that connect with existing fan bases.
Interactive and immersive content experiences will likely become a priority as the company explores technologies like augmented reality and virtual reality to engage audiences in new ways.
Cross-platform storytelling that spans traditional TV, streaming, and mobile experiences could become Paramount’s distinctive approach to content creation. This strategy would leverage the company’s diverse media assets.
Data-driven content decisions will guide what gets produced, with the company using viewer analytics to inform creative choices and marketing strategies.
Expansion of Streaming Platforms
Paramount+ will continue to be the centerpiece of the company’s digital strategy. The platform’s pivot to streaming reflects Paramount’s recognition that direct-to-consumer relationships are essential for future growth.
The platform will likely introduce new subscription tiers to attract different viewer segments. This could include more affordable ad-supported options and premium bundles with exclusive content.
Content diversification on Paramount+ will be crucial. The platform will need to invest in sports, news, and international programming to compete with other streaming giants.
Strategic partnerships with device manufacturers and telecom companies will help expand the platform’s reach. These deals could include pre-installed apps or special subscription offers for customers.
Technology improvements will enhance the user experience. Better recommendation algorithms and potentially social viewing features will build a community around content.
