CBS Still Leaving Toward Radio Spinoff..However...

Les Moonves

CBS and Viacom are “not in active discussions” for a potential reunion, Leslie Moonves said on Thursday, adding, “or anything like that.”

“We are a standalone public company,” the broadcast boss continued. “We’re really happy with the hand we are playing.”

According to thewrap.com, Moonves’ comments took place during the Beverly Hills-based Bank of America-Merrill Lynch 2016 Media, Communications and Entertainment Conference. He’ll take the stage next week at the east coast Goldman Sachs version.

The question comes about amid struggles at Viacom, which recently saw Philippe Dauman stepping down as CEO. Meanwhile, CBS continues to surge. Both publicly traded corporations fall under the National Amusements, Inc. umbrella, which is controlled by the Sumner M. Redstone Trust. CBS and Viacom were one company until a 2005 split. Some analysts think it may be time to try that once-winning combination again.

Sumner Redstone and his former protege Dauman have been squabbling all year, both in courtrooms and through the media. Dauman believes that the ailing 93-year-old’s daughter Shari Redstone has been pulling dad’s puppet strings in an epic power play.

In the end, it was the Redstones who won, though Dauman received a pretty sweet severance package. The Viacom board of directors saw a shake-up beyond just the French-born executive, which will probably kill any sale of Paramount Pictures.

Among other highlights of the conversation, Variety reports:

• The decision to delay the premiere of CBS All Access’ marquee original series — “Star Trek: Discovery” — until May came down to the fact that producers Bryan Fuller and Alex Kurtzman felt they needed more time. “I’d rather it be a few months late and great than early and not great,” he said. Moreover, the global licensing deal that CBS struck with Netflix for rights outside the U.S. to “Discovery” and all previous “Star Trek” series was rich enough to ensure that “Discovery” will make a profit from day one.
• Moonves said he expects to be able to cut a deal with the NFL “in the not too distant future” to make CBS’ football telecasts available on the All Access platform (at present they are blacked out). He acknowledged when pressed by Reif-Cohen that CBS’ “Thursday Night Football” package is a break-even proposition for the Eye but he stressed that CBS’ Thursday and Sunday NFL packages together are very profitable. Moreover, football delivers an invaluable ratings and promotional boost. Asked about the potential for rights fees to continue to climb, Moonves was candid. “They’re the 800-pound gorilla. The NFL says ‘jump’ and you say ‘yes sir.'”
• CBS’ local TV and radio stations are cleaning up on political advertising, particularly down-ballot Senate and gubernatorial races. “We are anticipating the best presidential election (cycle) for local ever,” he said.
• CBS’ plan to divest its radio station group is proceeding and leaning toward a spinoff transaction. However, they have had conversations with prospective buyers from the private equity and international side, as well as competing radio groups.