CBS and Viacom Should Merge, BTIG Analyst Greenfield Says

The transcript discusses the pressures on the media industry leading to mergers, such as Disney acquiring Fox and Time Warner merging with AT&T. It highlights the potential merger between Viacom and CBS, emphasizing the strategic benefits of combining their assets to achieve greater scale. Despite market challenges, the merger is seen as a logical step to compete with larger companies. The discussion also covers CBS's need for increased scale to secure sports content rights and the potential for shared resources to create value. However, the merger alone won't solve all problems, and further growth or acquisitions may be necessary.

What is one of the main reasons for the recent wave of mergers in the media industry?

• To reduce production costs

• To adapt to changing consumer behaviors

• To increase advertising revenue

• To expand into international markets

Why is the merger between Viacom and CBS considered logical?

• They have complementary assets like movie and TV studios

• They have a history of successful joint ventures

• They have similar market capitalizations

• They are both leaders in sports broadcasting

What is a major challenge CBS faces in the media landscape?

• High production costs

• Difficulty in renewing sports contracts

• Limited international presence

• Lack of original content

How could the merger between CBS and Viacom potentially benefit both companies?

• By expanding their international reach

• By increasing their advertising rates

• By sharing intellectual property and resources

• By reducing their operational costs

What might CBS and Viacom need to do after their merger to remain competitive?

• Acquire additional companies or assets

• Focus on producing more reality TV shows

• Increase their advertising budget

• Reduce their workforce