Viacom Can Only Go So Far on Its Own
Its turnaround under CEO Bob Bakish has been impressive. Now, it needs a merger with CBS to get to the next level.
Still a small fry among media giants.
Photographer: Victor J. Blue/BloombergAgainst the odds, Bob Bakish pulled Viacom Inc. out of its darkest days, put a halt to the obituaries being drafted for the company, and gave it new life. But this may be about as far as Viacom can go on its own. It’s time to make a deal with CBS Corp.
The parent of MTV and Nickelodeon posted first-quarter results on Tuesday morning that showed mixed progress in its turnaround efforts and the difficulty of being a small fry in the media world. Profit, aided by improvements at the Paramount Pictures film studio, surpassed analysts’ expectations. Still, revenue fell short, as cord-cutting continued to weaken advertising sales, a trend that’s unlikely to reverse.