PARAMOUNT AS A TARGET WHO IS INTERESTED MORE ? BIG DIVERSIFIED MATURED BRANDED 1 BACKGROUND PARAMOUNT COMMUNICATIONS ESTABLISHED PRESENCE: TYPE OF BUSINESS: • Entertainment/Motion Picture production and distribution 1934 Worldwide Gulf & Western previously‚ name changed after acquisition of Paramount Pictures TYPE: HQ: Public NYC‚ New York‚ US • Publishing 2 BACKGROUND VIACOM ESTABLISHED PRESENCE: TYPE OF BUSINESS: • Networks • Cable Television • Entertainment
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EXECUTIVE SUMMARY: Viacom is a media conglomerate with operations in cable networks‚ radio‚ outdoor‚ entertainment and video. It is the parent company behind some of the most recognized brands in television‚ film and publishing‚ including the CBS Television Network‚ United Paramount Network (UPN)‚ MTV Networks‚ Black Entertainment Television‚ Paramount Home Entertainment and Simon and Schuster Publishing group. Viacom originated as CBS Films‚ the television syndication division of CBS. In 1971
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The Structure of Viacom We would like to analyze the structure of Viacom in two aspects‚ enterprises and management. In terms of enterprises‚ Viacom has its parent company‚ subsidiaries and divisions. To be more specific‚ the parent company of Viacom is National Amusements. The subsidiary is Viacom 18‚ which includes VH1‚ Nickelodeon‚ Comedy Central‚ MTV‚ Sonic Nickelodeon‚ Colors and Rishtey. The divisions of Viacom could divide into two parts. One section is Film Production and Distribution
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Paramount 1994 1.) On December 14‚ Paramount’s board dropped the merger agreement with Viacom and agreed to hold an auction for control of Paramount. The implication of this move was that although Paramount would endorse one of the two bids‚ the shareholders’ tender decisions ultimately would decide the winner. 2) 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
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PARAMOUNT 1994 CASES IN CORPORATE FINANCE July 12‚ 2013 Board of Directors Paramount Re: Acquisition Dear Board of Directors: In order to make our recommendation to the Board‚ we must address the following questions: 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
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E N E T ® Paramount Communications Inc.–1993 Steven N. Kaplan University Of Chicago A 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
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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
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Case Study Questions –Paramount Communications Inc. 1993- Why a paramount is a takeover target? Several Strategic Reasons - Cost reduction: through combinations of similar business and economy of scales - Sales increase: a) cross-promotions of each company’s brand and utilization of each company’s channels‚ and b) cooperation in international businesses. 2. Which of the two firms (Viacom or QVC) would make a better fit with Paramount? -Viacom: Overlap in the business creates
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Paramount Communications Inc. Question 1 Paramount is a takeover target because other firms see synergy value associated with combining Paramount’s assets and operations with their own. Specifically‚ Paramount has several assets that complement other media companies. Value in the media is generated through several different channels. As a media company‚ Paramount has a presence in most of the entertainment sectors (see Exhibit 2). There seems to be a drive toward consolidation and several industry
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1. WHY IS PARAMOUNT A TAKEOVER TARGET? Paramount is a potential merger target to Viacom and QVC for a few key reasons outlined below: Paramount & Viacom: (1) Synergy creation: The businesses of both companies are famous and highly complementary to each other. (2) Cost reduction: Paramount & Viacom both have economies of scale and are doing business in a similar industry. (3) Addition of enhanced and complementary distribution capabilities‚ which will significantly increase revenue. (4)
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