Preview

Viacom. Swat Analysis

Best Essays
Open Document
Open Document
2874 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Viacom. Swat Analysis
Viacom Inc. SWOT Analysis
Nowadays media companies continue growing and expanding, thus the challenges of staying competitive on the global scale become increasingly difficult. The same destiny takes over Viacom Incorporation, which strategy is developing on the international arena and retain it 's positioning in within the United States.
Viacom, named VIA in the New York Stock Exchange is second largest media conglomerates in USA after Time Warner Inc. and one of the largest media incorporations in the world. The company 's major holdings include: cable television, movie production, publishing and retailing. Starting with Cable television, Viacom is a major player in this field, owning MTV, Comedy Central and VH1 among other cable networks. These are number 1 music and comedy channels in the United States. Movie production and distribution: Viacom operates Paramount Pictures and the Blockbuster Video chain of video rental and distribution stores.
Viacom is controlled by National Amusements, a movie theater company (interest). "Chairman Sumner Redstone and his family maintain 71% voting control of the company through National Amusements ' holdings of Viacom class A stock. National Amusements was founded by Sumner Redstone 's father, Michael Redstone"(Media Owners 2005). Originally, Viacom was the syndication division of CBS, so called CBS Films. But in 1971 the division was renamed "Viacom" which stands for "VIdeo and Audio COMmunications." Viacom didn 't become an independent company until 1973. Only in 12 years period, in 1985 Viacom 's strategy became conglomerate, when it bought Warner-Amex Satellite Entertainment, the owner of MTV and Nickelodeon. After that it renamed the company "MTV Networks". At the same time, the new strong incorporation acquired Showtime Networks, Inc. (which included Showtime and The Movie Channel). Since 1986 Viacom 's life was controlled by Sumner Redstone 's National Amusements, a movie theater company. The growing media



Cited: Ahn, Hoekyun, Barry R. Litman; Vertical Integration and Consumer Welfare in the Cable Industry. Journal of Broadcasting & Electronic Media, Vol. 41, 1997 Ahrens Frannk; Media Firms Piece Together New Strategies, Washington Post 2005: Albarran, A. B., & Chan-Olmsted, S. (Eds.) Global media economics. Commercialization, Concentration and Integration of World Media Markets. Ames, IA: Iowa State University Press, 1998 Answers.com Demers, D. Global media: Menace or messiah? Cresskill, NJ: Hampton, 1999 Gershon A Herman E., & McChesney, R. The global media: The new missionaries of corporate capitalism. London: Cassell, 1997 Isaak, Robert A Lessig, Lawrence. Free Culture: How Big Media Uses Technology and the Law to Lock down Culture and Control Creativity. New York: Penguin, 2004. Litman, B. The motion picture industry. Boston: Allyn & Bacon, 1998 Media Owners Press-Release. Viacom 's MTV Networks Agrees to Acquire Atom Entertainment. Yahoo. Finance. August 9, 2006: Viacom Inc

You May Also Find These Documents Helpful

  • Best Essays

    COMCAST v3

    • 2318 Words
    • 8 Pages

    Comcast Corporation was established in 1963 on the joint purchase of American Cable Systems (Associated Press, 2011). With a small starting base of US$ 3 million in revenue during the 1970s, Comcast rapidly expanded to become the world’s largest media company and the leading revenue generator in terms of content broadcasting and cable sectors (Fabrikant, 1990). Comcast is also one of the largest internet and television services providers in the U.S. Headquartered in Philadelphia, Pennsylvania, the company’s key revenue channels include the followings: featured movies, TV programs and series, theatrical exhibition, cable TV channels (E-Entertainment, Golf Channel, NBCSN) and broadcasting, OTA national broadcasting channels (NBC, Telemundo), digital distribution, internet services provider, film production (Universal Pictures), and themed parks and resorts under the Universal brand name (Norman, 2012). Comcast’s 2013 revenue and net…

    • 2318 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    External factors such as free-to-air television of the MBC group channels in 2007, pose more of a threat in the future due to the fast-changing nature of the industry so in regards to the market growth of the network itself. Contributing towards the external factors are the networks who “copycat” the Showtime Arabia network is a large threat where if Showtime Arabia develops something new, the network frequently sees its competitors doing the same thing one week later. While the force of retrenchment and downsizing of the company had been implemented amongst Showtime Arabia network; due to the competitive nature of television industry, had shown success a lot of the previous workers had been redeployed to other roles.…

    • 2053 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    CTCS 191 Paper

    • 1838 Words
    • 6 Pages

    Initially created by Time Warner under the name, “The Comedy Channel”, Comedy Central has undergone many changes in its twenty-one year history. In an effort to compete with The Comedy Channel, Viacom founded Ha!, which focused mostly on syndicated comedy shows, which Viacom already owned licenses from one of its other channels, Nick at Nite, as well as original comedy skits and stand-up performances. Through a partnership, Time Warner and Viacom combined their channels to create CTV: The Comedy Network. The name was changed shortly after to Comedy Central in an effort to avoid legal battles with a Canadian Network also using the “CTV” abbreviation (Reuters). In 2003, Viacom purchased Time Warner’s stake in the channel to gain sole ownership of the channel (Comedy Central Website)(Reuters). Currently Comedy Central is owned by Viacom through it’s MTV Networks Division, a subsidiary company of Viacom which runs many…

    • 1838 Words
    • 6 Pages
    Best Essays
  • Satisfactory Essays

    Comcast Corporation

    • 447 Words
    • 2 Pages

    Another important aspect of Comcast’s success is the various digital media and ventures that they own. Based on the Columbia Journalism Review, Comcast owns part of Hulu, TiVO, and VeriSign (Columbia, 2013). These three services are very popular and can really benefit Comcast with…

    • 447 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The Walt Disney Company is the world’s second largest media company, with a revenue of over twenty five billion dollars in the year 2000. 46% of their income comes from films, publishing, and merchandise, 23% of their income comes from theme parks and resorts, and the other 31% comes from broadcasting. The company has many internet, music, recreational, publishing, broadcasting, and (obviously) filming assets, including:…

    • 1263 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Taran Swan Hbr Case Analysis

    • 2593 Words
    • 11 Pages

    During the three years Swan spent with Nickelodeon International she had studied entry strategies for ten countries, but Latin America was her favorite. Viacom, the owner of Nickelodeon, needed to see a proven business plan from Swan to be convinced to enter the Latin America market. MTV Latin America was struggling and Viacom did not want to invest unless there were strong indicators that it would succeed.…

    • 2593 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    6. Kunz, W M. (2006). Culture Conglomerates: Consolidation in the Motion Picture and Television Industries. Publisher: Rowman & Littlefield Publishers, Inc. p. 2.…

    • 2124 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Paramount 1994

    • 981 Words
    • 4 Pages

    Acquiring Paramount Communications, Inc (PCI) was important for Redstone as it would enable Viacom to obtain a stronger position in the communications industry. His initial offer was designed to show that Viacom was a better strategic partner for PCI than QVC. The deal was more in favor of Viacom than Paramount as Viacom‘s initial offer was a combined offer of cash and securities. Under the terms of the initial offer, Paramount shareholders would receive voting and nonvoting stock of Viacom. However, control of Viacom would remain vested in the existing controlling shareholders of Viacom. The offer also contained various defensive provisions like the $100 million termination fee and the lock up option which were designed to deter Paramount and/or its shareholders from seeking or accepting any competing offers. The market (financial analysts and traders) was skeptical because of the value ($69.14/share) of the stock portion of this offer as well as the fact that it included other restricting conditions on PCI including the hefty termination fee.…

    • 981 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Viacom was founded 1971 and they were in partnership with Columbia Broadcasting System Inc., and created themselves as a public company. Year 1983, they tied up with Warner Communications Inc. and Warner Amex Cable Communications. 1985, they have acquire 66% of MTV Networks. 1987, MTV had their expansion and expanded to Europe. 1991, they get hold of 50.01% of MTV Europe. 1994, they have completed joining 9.9 Billion Dollars with Paramount Communications Inc. Until the year 1998, they are continuously producing shows and entertainment on air. 1999, they have joined the New York Stock Exchange. By 2000, they have completed their merge with the CBS Corporation. Viacom Inc., re-founded on January 3, 2006, is a global mass media conglomerate that emphasizes on cinema, and cable television. 2006, moving forward, they continuously closed numerous partnerships with different entertainment companies and became internationally recognized.…

    • 3185 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Paramount Case Analysis

    • 763 Words
    • 4 Pages

    Upon considering the situation at hand, we feel that Viacom would make a better fit with Paramount.…

    • 763 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Stock Market and Paramount

    • 2278 Words
    • 10 Pages

    Question 2 Both QVC and Viacom are interested in acquiring Paramount. Viacom is interested in Paramount because the two businesses are highly complementary and would create synergies. The combination would create opportunities for new businesses, reduce cost through economies of scale and removal of redundant functions, enhance distribution, and increase promotional potential. New business opportunities would be created by having a broader entertainment firm that can be present in more markets. Distribution and promotion of both Viacom and Paramount would be enhanced as each would be able to utilize the other’s content on their distribution channels. The company would be a comprehensive entertainment company that could compete in every entertainment sector.…

    • 2278 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Paramount 1993

    • 8076 Words
    • 33 Pages

    t the end of August 1993, Sumner Redstone, Chairman of the Board of Directors of Viacom, sat back and wondered what to do about Paramount Communications. He had been pursuing the acquisition of Paramount for some time but seemed to have reached a road block. Beginning in 1989, Redstone and Martin S. Davis, Chairman of the Board and Chief Executive Officer of Paramount, had held informal discussions from time to time concerning the possibility of a business combination. Those discussions took a much more serious turn in April, 1993, when Davis and Redstone sat down to dinner and began to discuss possible terms for a Viacom-Paramount merger. Such a combination had the potential to create one of the world’s largest entertainment conglomerates with significant market shares in cable TV, movies, film distribution, publishing, and sports. More importantly from Redstone’s perspective, Viacom-Paramount would have the ability to create, acquire and produce programming that it could drive to every region on earth. At dinner, the two were able to agree that Davis would be CEO of the combined company and that Redstone would remain the chairman and controlling shareholder. They were unable, however, to agree on a price or terms. During the week of June 28, Viacom’s representatives expressed a willingness to negotiate a transaction based upon a price to Paramount’s stockholders of $63 per share. Viacom conditioned its proposal upon Paramount’s willingness a) to grant Viacom an option to acquire from Paramount shares representing up to 20% of Paramount’s outstanding shares, at an exercise price of the then current market price of Paramount’s Common Stock if the transaction did not close; and b) to pay Viacom a termination fee of $150 million plus expenses, again, if the transaction did not close. The discussions terminated on August 25, 1993. The Paramount…

    • 8076 Words
    • 33 Pages
    Powerful Essays
  • Powerful Essays

    Paramount 1994

    • 1172 Words
    • 5 Pages

    3.) (Refer Chart “Stock Price Movements” in appendix.) Before the announcement, (on September 7), Paramount stock traded at $55.875 per share. From that point, Paramount stock reached $64.50 on September 13 (day of the announcement) and finished at $63.125 on September 14. These movements imply that market reacted favourably to Paramount. However, the market reacted unfavourably to Viacom. From September 7 to 14, Viacom Class A stock fell from $66.125 to $61.50, and Viacom Class B stock declined from $59.25 to $55.375 over the same period. S&P 500 did not move over the same week. On September 20, QVC announced its plan to acquire Paramount. The market's reaction to this announcement was negative; QVC’s stock price dropped from $59.50 on September 17, to $56 on September 20. The decline in prices of Viacom and QVC meant that market expected them to overpay for paramount. Court’s ruling on Nov 23 increased the probability that QVC would be the winning bidder. Hence, price of Viacom’s Class A and Class B stock rose by $3 each, while that of QVC declined by $1. On January 7, 1994, Viacom announced a $9.4 billion merger with Blockbuster Entertainment, and consequently, a new bid for Paramount. The market prices reflected the consensus that both firms were overpaying for Paramount. The probability of Viacom winning control increased; Viacom A shares fell from $47 per share to $46.1 while B shares fell from $41 to $38.25. Meanwhile the probability of QVC winning declined; QVC shares increased by $1.1. As the competing firms, Viacom and QVC, increased their bets, their probability of winning increased, and consequently their market prices fell. On February…

    • 1172 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    His property is for the most part utilized for farms to re-promote buffalo meat for his Ted's Montana Barbecue chain, storing up the world's biggest crowd. Turner TV Framework, Inc. converged with Time Warner, Inc. on October 10, 1996, and on January 11, 2001, Time Warner was acquired by AOL to end up AOL Time Warner. The burst of the dotcom air pocket hurt the development and benefit of AOL, which thus dragged down the consolidated organization's execution and stock cost, where he lost his operational part also. It is evaluated that, as Time Warner's greatest individual shareholder at the time, he lost give or take $7 billion when the stock broken down in the merger's wake. It was accounted for that, when gotten some information about purchasing back his previous resources, he answered that he "can't bear the cost of them now". Possibly he will on the off chance that he figures out how to raise a couple of more wild oxen on his amassed…

    • 748 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Cartoon Channels

    • 937 Words
    • 4 Pages

    It was to leverage this niche market that channels like Cartoon Network came into existence. It was launched in October 1992 in the US by one of the world’s leading media companies, Turner Broadcasting System. It offered animation programmes from TBS’s extensive library of more than 10,000 Warner Bros, Hanna-Barbera and MGM cartoons. Over the next few years the channel launched in different parts of the globe showing not only their famous cartoons, but also developing original shows. Cartoon Network entered India in October 1995, sharing airtime with Turner Network Television (TNT). As the pioneer in the Indian cartoon and animation market, Cartoon Network quickly gained popularity and had a huge fan base in the metropolitan cities.…

    • 937 Words
    • 4 Pages
    Good Essays