or


[06/15/05 - 12:00 AM]
Viacom Board of Directors Approves Creation of Two Publicly Traded Companies Following Spin-Off

[via press release from Viacom]

Viacom Board Of Directors Approves Creation Of Two Publicly Traded Companies Following Spin-Off

Tax-Free Spin-Off to Maximize Long-Term Potential of Businesses and Highlight Value of Leading Entertainment Brands

NEW YORK, June 14, 2005 -- Sumner M. Redstone, Chairman and Chief Executive Officer of Viacom Inc. (NYSE: VIA and VIA.B), announced today that the Company�s Board of Directors has unanimously approved the creation of two separate publicly traded companies from the Company�s leading entertainment brands through a spin-off to Viacom stockholders.

The transaction will result in stockholders holding shares in both companies, and is expected to be tax-free to shareholders. Following the spin-off, which is expected to be completed in the first quarter of 2006, Sumner Redstone will serve as Chairman and will be the controlling shareholder of the companies, which will both be headquartered in New York.

Viacom also announced that the Board of Directors has named Shari Redstone to the newly created position of Non-Executive Vice Chairman of the Board. Ms. Redstone, President of National Amusements Inc., has been a member of the Viacom Board since 1994. Additionally, in line with its ongoing corporate governance initiatives, the Company announced that Frederic V. Salerno, a member of the Viacom Board since 1994 and former Vice Chairman and Chief Financial Officer of Verizon Communications Inc., has been appointed to the newly created position of Lead Independent Director. The appointment reflects Mr. Salerno�s role as Chair of the Board�s Nominating and Governance Committee.

Mr. Redstone said, �Today we celebrate our past successes by stepping forward to embrace the future. This transaction is the logical extension of the strategic vision that created Viacom and recognizes the inherent diversity of our assets as well as the changing business environment. We believe that this transaction will enable Viacom shareholders to fully benefit from the important gains we realized in building this Company by fully unlocking our significant untapped potential and creating new opportunities to build on our leadership positions, maximize earnings growth and fully exploit our considerable strengths.�

�I want to commend the Viacom Board of Directors and the Viacom management team for the careful and thorough strategic analysis that led to this important decision,� Mr. Redstone added. �The decision to create two new companies was the result of intense study by the Board, which worked closely with the Company�s management and carefully analyzed all strategic options before reaching its conclusion. The Board believes the transaction will result in two strong, focused and nimble companies, and will better enable management to directly impact and maximize the strengths of their respective businesses. Additionally, the Board believes that the transaction will provide current and potential stockholders with attractive investment options that are more closely aligned with their various investment objectives.�

Mr. Redstone added that the Board has formed a Special Committee, which he will chair, that will assist and monitor the process of creating the two companies. Also serving on the Committee will be Viacom Board members Shari Redstone, Frederic Salerno and Philippe Dauman. Ms. Redstone will serve as Vice Chairman of the Committee.

The new company created through the tax-free spin-off will retain the Viacom Inc. name and will be led by Mr. Freston. The new Viacom will be comprised of MTV Networks (including MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, CMT: Country Music Television, Spike TV, TV Land and many other networks around the world), BET, Paramount Pictures, Paramount Home Entertainment and Famous Music. The other company, to be called CBS Corporation, will be led by Mr. Moonves and will combine the CBS and UPN broadcast networks, Viacom Television Stations Group, Infinity Broadcasting, Viacom Outdoor, the CBS, Paramount and King World television production and syndication operations, as well as Showtime, Simon & Schuster and Paramount Parks. Additional announcements regarding specific details on the two new companies, including financial structures, management teams and a more detailed timetable for the process, will be made over the next several weeks.

�The new Viacom and CBS will have highly complementary business portfolios, leadership positions in their industries and superior management teams that have direct incentives to create greater shareholder value. In addition, each company will have distinct capital structures designed to generate higher returns. Under the leadership of Tom Freston and Leslie Moonves, shareholders of each company will benefit from more focused long-term and individualized approaches that will amplify the significant strengths of the respective businesses.

�The new Viacom will focus on organic expansion through the creation of cutting-edge content, unrivaled brands, specialized and highly desirable demographics and the continuing expansion of delivery platforms,� Mr. Redstone added. �We anticipate that this company�s stock will attract a higher trading multiple that can in turn be used for targeted acquisitions in promising areas. With the increased importance of wireless, online and video gaming businesses, the ability of the new Viacom to be opportunistic will be a distinct and powerful advantage. Additionally, we believe that the new Viacom�s significant cash flow generation will provide the opportunity for significant share repurchases.�

�The new CBS will be a strong generator of free cash flow with industry-leading positions across television and radio broadcasting, television production and out-of-home advertising. With industry leading positions in content creation and delivery, CBS will be extraordinarily well-positioned to maximize existing opportunities and execute on new areas designed to create value. Importantly, this company will also have the financial capability to return significant capital to stockholders through dividend payments and stock repurchases.�

Viacom is a leading global media company, with preeminent positions in broadcast and cable television, radio, outdoor advertising, and online. With programming that appeals to audiences in every demographic category across virtually all media, the company is a leader in the creation, promotion, and distribution of entertainment, news, sports, music, and comedy. Viacom�s well-known brands include CBS, MTV, Nickelodeon, Nick at Nite, VH1, BET, Paramount Pictures, Infinity Broadcasting, Viacom Outdoor, UPN, TV Land, Comedy Central, CMT: Country Music Television, King World, Spike TV, Showtime, Paramount Parks, and Simon & Schuster. More information about Viacom and its businesses is available at www.viacom.com.

Information About the Transaction

In connection with the proposed transaction, Viacom intends to file a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission. Investors and securityholders are urged to read the Registration Statement and related materials that are filed with the SEC when they become available, because they will contain important information about the proposed transaction. Investors and securityholders will be able to obtain copies of these documents, and other documents containing information about Viacom, without charge, at the SEC's website at www.sec.gov.

Cautionary Statement Concerning Forward-looking Statements

This news release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not based on historical facts, but rather reflect the Company�s current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause the actual results, performance or achievements of the Company to be different from any future results, performance and achievements expressed or implied by these statements. The forward-looking statements included in this document are made only as of the date of this document, and, under section 27A of the Securities Act and section 21E of the Exchange Act, we do not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.





  [june 2005]  
S
M
T
W
T
F
S
   


· SHOWATCH
(series past and present)
· DEVWATCH
(series in development)
· MOVIEWATCH
(tv movies and mini-series)





[05/28/26 - 08:01 AM]
Video: "Gamechangers: The Ashlyn Harris Story" - Official Trailer - The Roku Channel
Soccer superstar Ashlyn Harris rose from a chaotic childhood, overcoming tragedy to become a two-time FIFA World Cup champion and USWNT hero.

[05/28/26 - 08:01 AM]
Video: "I Am Frankelda" - Official Trailer - Netflix
Frankelda, a determined 19th-century Mexican writer, journeys into her subconscious to face the monsters she's written about.

[05/28/26 - 07:32 AM]
Video: "Hoppers" - Coming to Disney+ June 3
The latest film from Pixar Animation Studios arrives on the streaming service next week.

[05/28/26 - 07:06 AM]
Video: One Woman, One Legacy - BritBox Debuts Official Trailer and Key Art for Original Series "A Woman of Substance," Premiering June 24th
Based on the best-selling novel of the same name by Barbara Taylor Bradford OBE, "A Woman of Substance" is an epic period drama spanning six decades, charting the rise of Emma Harte from penniless Yorkshire maid in the early 1900s to powerful 1970s business mogul.

[05/28/26 - 07:01 AM]
Video: "In the Hand of Dante" - Official Trailer - Netflix
A writer helps a mob boss steal Dante's handwritten "Divine Comedy" manuscript as a parallel tale follows the 14th-century poet creating his masterpiece.

[05/28/26 - 07:01 AM]
Video: Apple TV Unveils Trailer for Season Two of Neo-Noir Detective Series "Sugar"
"Sugar" will return for its eight-episode second season on Friday, June 19 on Apple TV with one episode, followed by one new episode weekly, every Friday through August 7.

[05/28/26 - 06:01 AM]
Video: "Million Dollar Nannies" - Official Trailer - Hulu
It's not a job, it's a lifestyle. A young group of elite nannies heads to Ibiza to launch a new kind of agency, built by nannies, for nannies.

[05/28/26 - 02:01 AM]
The Fourth and Final Season of "Death Inc." Releases on August 7
The fourth season begins with a big question: who will get the coveted director's chair?

[05/27/26 - 03:13 PM]
FOX Saturday Baseball Draws Strong Audience Over Holiday Weekend
2,355,000 viewers tuned in to the two-game slate highlighted by the Dodgers' 11-3 victory over the Brewers in most of the country.

[05/27/26 - 01:16 PM]
"WWE: Made in America" Special Premieres This Friday, May 29, at 11 P.M. ET on USA Network
As part of USA Network's America 250 celebration, the one-hour special traces the evolution of a regional business into a global powerhouse, examining how the company mirrored the American spirit across five decades.

[05/27/26 - 01:01 PM]
Bravo's "Southern Hospitality" First-Ever Two-Part Reunion Event Begins Wednesday, June 3 at 9 P.M. ET/PT
Republic Garden & Lounge comes to life in New York as host Andy Cohen sits down with the entire cast on an immersive reunion set inspired by King Street and the crew's stomping grounds.

[05/27/26 - 12:31 PM]
Prime Video Unveils New and Returning Canadian Originals at 2026 Amazon Upfront
Prime Video also debuted trailers for "Young Farts Trailer Parts," executive produced by Jacob Tierney and premiering July 17, and "Operation Deception."

[05/27/26 - 12:17 PM]
USA Sports Announces 2026 Schedule for Inaugural Season of New Pac-12 Football Coverage on USA Network
USA Network's 22-game slate features multiple appearances by all eight Pac-12 schools with at least one home game for every team, showcasing each unique gameday experience throughout the Pac-12.

[05/27/26 - 12:16 PM]
FOX Sports Unveils Powerhouse 2026 College Football Schedule
In 2026, FOX Sports is home to 137 college football games across the FOX family of networks - including 89 Big Ten conference games across FOX, FS1 and BTN.

[05/27/26 - 12:02 PM]
2025 National Champion Indiana Hoosiers, Michigan Wolverines, and Iowa State vs. Iowa Headline Early-Season Big Ten Football Schedule Across NBC and Peacock
NBC Sports' Big Ten coverage starts on Saturday, August 29, as the USC Trojans host the San Jose State Spartans at 3 p.m. ET on NBC and Peacock.