By Mae Anderson, Technology Writer
ATLANTA (AP) --Media mogul Sumner Redstone's National Amusements is abandoning a proposal that CBS and Viacom reunite after a 10 year split.
The news comes as Viacom named acting CEO Bob Bakish as its permanent head.
National Amusements, which owns most of the voting shares of the two companies, had urged the companies to combine in September, saying that a tie-up would help them compete better as technology and the entertainment industry rapidly evolve.
Now, the company, run by Redstone and his daughter Shari, says that following management changes at Viacom and strength at CBS, which operates CBS, Showtime and other entities, it makes more sense for the companies to continue as separate entities.
Viacom, which owns the Paramount Pictures movie studio and pay TV channels such as Comedy Central, MTV, BET and others, has been struggling to improve its profit as Paramount has struggled to produce hits and cable viewership declines.
The company named Robert Bakish as acting president in late October and appointed him permanent president and CEO on Monday.
The appointment caps off a management saga that culminated earlier this year, when longtime Viacom CEO Phillipe Dauman was pushed out following a legal battle with media mogul Sumner Redstone's daughter, Shari Redstone, over control of the company. The fight ended with Shari Redstone as a Viacom director and president of National Amusements, which has a controlling stake in CBS and Viacom. At the time Tom Dooley was named interim CEO, but he announced unexpectedly he was leaving in October and Bakish was then named acting CEO.
Meanwhile, as more people cut the cable cord, choosing instead to stream TV shows or movies online at places like Netflix, Hulu, iTunes and Amazon.com, CBS has found success under Les Moonves streaming its popular shows like "NCIS" and "The Big Bang Theory," as well as its stand-alone, streaming Showtime channel.
There would have been cost savings if the companies combined, but strategically, the positives weren't as clear, said Instinet analyst Anthony DiClemente.
"This allows CBS to continue to operate in a very nimble and autonomous fashion," DiClemente said. "For Viacom, I think in terms of long term strategy, the verdict is still out."
Viacom said in a statement that it received the letter sent by National Amusements and will provide more updates later. CBS referred comment to National Amusements.
Viacom Inc. Class B shares fell $3.01, or 7.8 percent, to $35.61 in afternoon trading Monday. CBS Corp. Class B shares slipped 4 cents to $62.52.
Forsman & Bodenfors Shifts Its Singapore Group Creative Director Ivan Guerra to Its NYC Hub
Forsman & Bodenfors (F&B) has expanded its creative leadership in New York by relocating longtime group creative director Ivan Guerra from the Singapore office to the Big Apple to support a quickly growing list of new client wins.
As a group creative director in Singapore, Guerra racked up numerous accolades and participated in a myriad of new business wins that fueled the agency’s growth year over year. He explained why now was the right time to come back to the states, adding more nuance in the process. ”Singapore is the business hub of Asia, New York is the business hub of the world,” he said. “Our office in Singapore was small when I arrived. Since then, we’ve more than tripled in size, and became the [number one] most creative agency in the country, and work with more and bigger clients than ever before. There’s always more to be done, but the agency I’m leaving behind is in fantastic shape and ready to take on the world, as I know they will.”
For Guerra, there’s an opportunity to replicate in New York the success he had in Singapore. During his career, he repositioned and promoted businesses and products across a wide variety of markets and industries including P&G, Coca-Cola and Booking.com. Some of his well-known work includes a campaign that increased Samsung’s sales in the Middle East by almost 200%, one of the most iconic films in the history of Converse, Verizon’s most successful sports partnership program “Data Dunk” with the NBA, and a “Proud Whopper” campaign in 2014 that reignited Burger King and garnered 13 Cannes Lions and a Grand Clio.
Coming back to New York after 15 years in the business, including a stint where he spent time at the likes of top-shelf agencies like R/GA,... Read More