(Bloomberg Businessweek) -- When Sumner Redstone separated Viacom and CBS in 2006, the thinking was that the share price of Viacom, whose cable channels were seen as having faster-growth potential, would be higher if it weren’t shackled to CBS. But it was CBS that fared better, and now with Sumner ailing, his daughter, Shari, who never wanted the companies to separate, will preside over the recombined media giant. Bringing the most watched U.S. TV network and the owner of brands such as MTV, Nickelodeon, and Paramount Pictures back together will create an entertainment powerhouse with $28 billion in annual sales that should be better positioned to compete with Walt Disney Co. and Comcast Corp.
To cement her place as head of the family business, Redstone had to dispatch two CEOs who were blocking her plans and win court battles with two of her dad’s ex-girlfriends over his care and gifts he’d given them. Now she must deliver the $500 million in annual cost savings she promised the merger would provide and ensure that shows such as 60 Minutes and SpongeBob SquarePants stay relevant in the streaming age.
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