Saturday, October 1, 2016

Media-Buyers Salivating Over Potential Viacom, CBS Merger

As Viacom Inc. and CBS Corp. explore a merger that would reunite the two media companies after more than a decade, media buyers who control a large portion of their ad revenues are offering their nods of approval. They envision complementary audiences, ad products and possible discounts for bulk buys across multiple clients.

According to The Wall-Street Journal, media-buying executives see the potential union as a one-stop-shop where they’d be able to buy ads targeting young viewers on Viacom cable brands like MTV and Comedy Central, and ads aimed at older audiences on broadcast juggernaut CBS. The ability to commit ad dollars to one larger unified group instead of two separate groups could lead to increased commitments and ultimately cost efficiencies, several buyers said.

National Amusements Inc., which holds nearly 80% voting stakes in CBS and Viacom, on Thursday called for the companies’ boards to explore a reunion. In a letter to the boards, National Amusements said it believed a merger could “allow the combined company to respond even more aggressively and effectively to the challenges of the changing entertainment and media landscape.”

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