Spotlight
Thursday, 01 May
Sumner Redstone
Media Post's Diane Mermigas addresses the question posed by Wall Street and Hollywood: "Can Sumner Redstone afford not to reunite Viacom and CBS?" Former Chairman and CEO of the Walt Disney Company Michael Eisner said on CNBC's Fast Money that failing to unite the companies would prove "suicidal," Mermigas notes, but the Viacom chief has not given any indication that he shares those sentiments. "In brief remarks Tuesday, Redstone said he expected Viacom and CBS to continue to fiercely compete, even in what Wall Street perceives is an increasingly unfair fight. Some on Wall Street suggest Redstone could wait until CBS stock drops below its current $22 a share, making it one of the poorest performers in an overall languid media sector." Mermigas predicts Sumner cannot avoid reuniting the companies, and with a sentimental note, calls the potential consolidation "reminiscent of the good old days."
Amid speculations of a pending merger, CBS's Les Moonves seems to be acting unusually independently, as he apparently did when he decided to bring extreme fighting to the network. "Les usually asks my opinion," Sumner Redstone said Wednesday when asked about the four mixed-martial arts fights that will begin airing soon on CBS, reports the Hollywood Reporter. "This time, Moonves did not." Redstone went on to condemn the the deal struck with Elite Xtreme Combat because it was not "socially responsible," and to say, "I'm a lover, not a fighter."
Bloomberg News focuses on the salary dissparity between Philippe Dauman ($22 million estimate) and Les Moonves ($71 million). With Viacom's net sales up 18 percent and CBS' down 1.7 percent, Graef Crystal questions why the Viacom CEO is rewarding lesser results. "It's time for Redstone to step into a well-deserved retirement and to get some tigers to replace the pussy cats now on both Viacom's -- and especially -- CBS's board compensation committees," Crystal says. He makes no mention of a potential merger.
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