Viacom Explores Division

Viacom may try to divide and conquer.
The head of Viacom is talking to the board about possibly dividing its businesses into separate publicly-traded companies. Viacom Chairman/CEO Sumner Redstone suggested the divisions may help the businesses reach their monetary goals in a more tax-efficient way. The board has directed the company to explore the question, and the company expects to announce details in the second quarter.
He said Viacom could potentially separate MTV into its own business, for example, and group CBS Television with outdoor and radio into another business.
Redstone said Viacom’s businesses have different growth characteristics and attract different types of investors. “It’s become clear,” he said “that this important distinction is likely to continue to limit Viacom’s ability to receive full value for its assets.”