CBS Merger

Definition

The CBS Merger refers to the 2000 merger between CBS Corporation and Viacom, two major players in the media industry. This merger combined their extensive assets, including television networks, film studios, and cable channels, leading to significant media concentration and a reshaping of the competitive landscape in broadcasting and entertainment.

5 Must Know Facts For Your Next Test

1. The CBS Merger created one of the largest media conglomerates in the world, significantly increasing both companies' market power in the entertainment industry.
2. This merger was part of a larger trend of consolidation in the media sector during the late 1990s and early 2000s, driven by the desire to compete globally.
3. Post-merger, CBS and Viacom were able to leverage their combined resources for cross-promotional opportunities across various platforms.
4. The merger raised concerns about reduced competition and diversity in media ownership, prompting discussions about regulatory oversight in the industry.
5. In 2019, CBS and Viacom announced a reunion after having been split since 2006, indicating ongoing shifts in media consolidation strategies.

Review Questions

• How did the CBS Merger impact competition within the media landscape?
  • The CBS Merger significantly impacted competition by creating a massive entity that could dominate several sectors of the media industry. By combining resources from both companies, they increased their bargaining power over advertisers and distributors. This consolidation led to concerns about fewer independent voices in broadcasting and potential monopolistic practices that could stifle innovation and diversity in content.
• Discuss the implications of the CBS Merger on regulatory policies governing media ownership.
  • The CBS Merger brought attention to regulatory policies concerning media ownership and concentration. As the merger created a more powerful player in the market, it highlighted the need for regulatory bodies to reassess existing laws related to competition. The merger raised alarms about potential negative effects on content diversity and local news coverage, leading to calls for stricter regulations to ensure a competitive marketplace.
• Evaluate how the CBS Merger reflects broader trends in media concentration and conglomeration over the past few decades.
  • The CBS Merger is a prime example of the broader trend toward media concentration and conglomeration that has defined the industry since the late 20th century. As companies merge or acquire one another, they seek to diversify their offerings and enhance their global reach. This trend has resulted in a few powerful conglomerates controlling vast segments of media content, raising important questions about consumer choice, cultural representation, and the future of independent media. The ongoing mergers and acquisitions signal an ever-evolving landscape where traditional boundaries are blurred.

Related terms

Viacom:

A global media company that owned several prominent brands, including MTV, Nickelodeon, and Paramount Pictures, before its merger with CBS.

Media Conglomerate: A large corporation that owns multiple companies across various media sectors, such as television, radio, film, and digital content.

Deregulation: The process of reducing or eliminating government rules governing industries, including telecommunications and media, which has allowed for greater consolidation among companies.