Viacom-Paramount-Blockbuster Merger Creates New Entertainment Giant

Strategic Insights -

The merger of Viacom, Paramount, and Blockbuster is expected to form the world's fifth largest entertainment company, with estimated annual revenues of $6.1 billion. Analysts predict that the acquisition will be approved by regulators without significant conditions. The combined entity will boast a diverse range of assets, including television stations, radio stations, TV networks, a film library, retail outlets, publishing companies, sports franchises, theme parks, and movie theater screens.

Key Takeaways:

  • The merged company will have an extensive portfolio of assets, including 12 television stations, 14 radio stations, and a 3,790-film library.
  • The company will own a 50% stake in the USA Network and Comedy Central, as well as a 50% stake in the Sci-Fi Channel.
  • The Paramount Network, set to debut in January, will have 28 affiliates and offer 45% coverage of U.S. homes.
  • The company will also possess a significant retail presence, with 3,593 Blockbuster outlets and 507 music stores.
  • The merged entity will have a robust publishing arm, with companies like Simon & Schuster and Prentice Hall.
  • The company owns part interests in several sports franchises, including the New York Knicks, New York Rangers, and Florida Marlins.
  • The merged company will have a large presence in the theme park industry, with six locations in the U.S. and Canada, and a 21% stake in Discovery Zone.
  • The company's TV syndicated programming includes popular shows like _Arsenio Hall_, _Entertainment Tonight_, and _Star Trek_.

Statistics:

  • Estimated annual revenues of $6.1 billion for the merged company.
  • 12 television stations owned by the company, with locations in cities such as Philadelphia, Washington, D.C., and Dallas.
  • 14 radio stations, including KBSG-AM/FM in Seattle and KNDD-FM in Seattle.
  • 3,790-film library, including assets like _Beverly Hills Cop 3_ and the seventh _Star Trek_ movie.
  • 3,593 Blockbuster retail outlets and 507 music stores.
  • 28 affiliates for the Paramount Network, with 45% coverage of U.S. homes.
  • 21% stake in Discovery Zone theme parks.

Sources:

  • [New York investment bank Veronis Suhler & Associates]
  • [Anonymous financial analyst]
  • [Internal company documentation]
  • [Various news outlets]