CBS Corporation

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This article is about the media conglomerate named CBS Corporation. For the company known as CBS Corporation from 1997 to 2000, see Westinghouse Electric (1886). For this company's history before 2000 and the Viacom/CBS split, see Viacom (original) and CBS. For the company now known as Viacom, see Viacom.
CBS Corporation
Type Public
Traded as NYSECBS, CBS.A S&P 500 Component
Industry Mass media
Predecessor(s)
Founded 1971 (as Viacom International (Viacom Productions)) January 3, 2006 (2006-01-03)[N 1] (as CBS Corporation)
Headquarters CBS Building, Manhattan, New York City, United States
Area served United States
Key people Sumner Redstone
(Executive Chairman)
Leslie Moonves
(President and CEO)
Revenue
  • Increase US$ 15.284 billion (2013) [1]
  • Increase US$ 14.089 billion (2012) [1]
Operating income
  • Increase US$ 3.259 billion (2013) [1]
  • Increase US$ 2.983 billion (2012) [1]
Net income
  • Increase US$ 1.879 billion (2013) [1]
  • Increase US$ 1.574 billion (2012) [1]
Total assets
  • Decrease US$ 26.387 billion (2013) [2]
  • Increase US$ 26.466 billion (2012) [1]
Total equity
  • Decrease US$ 9.966 billion (2013) [2]
  • Increase US$ 10.213 billion (2012) [1]
Employees 20,915 (2011)[3]
Parent National Amusements, Inc. (79%)[3]
Divisions
Subsidiaries Westinghouse Licensing Corporation
Website www.cbscorporation.com

CBS Corporation is an American mass media corporation focused on commercial broadcasting, publishing, billboards and television production, with most of its operations in the United States. The president and chief executive of the company is Leslie Moonves. Sumner Redstone, owner of National Amusements, is CBS's majority shareholder and serves as executive chairman. The company began trading on the NYSE on January 3, 2006. Until then, the corporation was known as Viacom, and is the legal successor to said company.[4] A new company, keeping the Viacom name was spun off from CBS. CBS, not Viacom, retains control of over-the-air television (CBS, CW) and radio broadcasting, TV production and distribution, publishing, pay-cable, basic cable (TVGN), and recording formerly owned by the larger company. CBS has its headquarters in CBS Building, Midtown, Manhattan, New York City, United States.[5]

History[edit]

Early years[edit]

Main article: Viacom (original)

Viacom was created in 1970 as the television syndication division of CBS, and was spun off in 1971. However, in 1999, Viacom acquired its former parent, by this time also named CBS Corporation, formerly Westinghouse Electric. The prior CBS Corporation also owned CMT and The Nashville Network (now Spike), which remained Viacom properties after the 2005 split, but the prior CBS did not own UPN, Showtime, Paramount Television, Paramount Parks, or Simon and Schuster.

In March 2005, Viacom announced plans of looking into splitting the company into two publicly traded companies, amid issues of the stock price stagnating (although it was alleged that another main force behind the split was the Super Bowl XXXVIII halftime show controversy, which led to MTV not being allowed to produce any more halftime shows, they had also produced the show for Super Bowl XXXV, the first Super Bowl CBS aired since regaining NFL rights and becoming MTV's corporate sibling).

Old separate Viacom logo (1990-2005).

On June 14, 2005, the Viacom board of directors approved the split of the company into two firms. The CBS Corporation name would be revived for one of the companies, to be headed by longtime television executive (and Viacom co-President) Leslie Moonves, and would include CBS, UPN, Infinity Broadcasting, Viacom Outdoor, Showtime Networks, and Paramount's television studio.

The split was structured such that the "new" Viacom was spun off from the "old" Viacom, which was renamed CBS Corporation. In a sense, this was a repeat of the 1971 spinoff. However, in this case, CBS retained virtually all of the prior firm's broadcast TV assets, including its various syndication companies.

With the split, the two new companies began trading on the NYSE on January 3, 2006.

Transactions during and after the merger[edit]

2004[edit]

In the interim, Viacom/CBS was involved in a number of transactions. On December 2, 2004 Viacom acquired CBS affiliate KOVR in Sacramento, from Sinclair Broadcast Group. Viacom also acquired two stations in West Palm Beach.

2005[edit]

Viacom/CBS has announced it would sell several non-duopoly UPN affiliates, in Indianapolis, Columbus, New Orleans, and Oklahoma City, with possibilities of additional sales.

CBS announced on November 3, 2005, that it would acquire College Sports TV (now CBS Sports Network) for US$325 million. CEO of CSTV Brian Bedol will continue to run that network and report to Leslie Moonves, chairman of CBS. The transaction was completed in January 2006.

2006[edit]

Announced early in 2006, CBS and DIC Entertainment signed a multi-year deal to provide three hours of programming that meet FCC standards for educational programming. The block would be called "KOL Secret Slumber Party on CBS"—which is also a partnership with America Online's KOL kids service and premiered on September 16, 2006.

Shows included are Sabrina, the Animated Series, Horseland, Madeline, Dance Revolution and many others.[6] It was originally supposed to be called "CBS's Saturday Morning Secret Slumber Party" but was renamed with KOL's alliance.[7]

The CW[edit]
Main article: The CW
The CW logo

On January 24, 2006, CBS Corporation, and Warner Bros. announced that they were to create a new broadcast network, The CW Television Network. The network officially debuted on September 18, 2006. The network formally debuted on September 20 with the 2 hour premiere of America's Next Top Model.

The network is the result of a merger of The WB (a Warner Brothers holding) and UPN (a CBS Corporation holding). CBS Corporation and Time Warner each own 50% of the network. Tribune Broadcasting (which previously owned a 25% stake on The WB) and CBS Corporation will contribute its stations as new network affiliates.

Paramount Parks[edit]
Main article: Paramount Parks

Three days after the announcement of The CW, on January 27, CBS announced that it was selling its Paramount Parks division. On May 23, 2006, CBS Corp. sold Paramount Parks to the Cedar Fair Entertainment Company. With this acquisition, Cedar Fair became the third-largest theme park operator[citation needed].

On June 30, 2006, Cedar Fair announced that it has completed its acquisition of Paramount Parks from CBS Corporation in a cash transaction valued at US$1.24 billion. The transaction included a 10 year license that allowed Cedar Fair to use the Paramount name in the parks through the 2017 season.[citation needed]

2007[edit]

  • February 7: CBS announced it was selling seven stations in Providence, Rhode Island, Austin, Texas, Salt Lake City and West Palm Beach, Florida to Cerberus Capital Management for US$185 million.[8] It sold another station, WFRV-TV in Green Bay, Wisconsin, and its satellite station, WJMN-TV in Escanaba, Michigan, to Liberty Media on February 13, 2007.[9] News reports estimate the deal at about US$234 million. CBS is swapping the stations and US$170 million in cash for 7.59 million shares of CBS common stock held by Liberty Media.
  • February 26: CBS announced that it will invest in Electric Sheep, which is a virtual world content developer. CBS hired Electric Sheep to develop some projects, including the creation of "The L-Word in Second Life". CBS also shot a commercial within the virtual world Second Life so to promote its show "Two and a Half Men." Another project that Electric Sheep is working on for CBS is a Star Trek-themed area in Second Life. By investing in Electric Sheep, CBS hopes to expand its activity "beyond the living room".[10]
  • March 20: CBS/CSTV announced it had acquired an online high school sports network, MaxPreps.[11]
  • April 12: CBS Corporation announces the creation of the CBS Interactive Audience Network.[12]
  • May 30: CBS Interactive announced that it had bought Last.fm for £140 million.[13]

2008[edit]

  • May 15: CBS Interactive announced that it had agreed to buy CNET Networks for $1.8 billion, with the deal due to close in the third quarter of 2008.[14] During the July 2nd noon broadcast, KYW-TV, a CBS owned-and-operated station in Philadelphia, announced that its parent acquired CNET and was putting it under CBS Interactive.[15]

2013[edit]

  • March 26 CBS and Lionsgate enter a 50/50 joint venture to operate the TV Guide Network (TVGN) and TVGuide.com.[16][17]
  • May 31 CBS buys the remaining half of TV Guide Digital from Lionsgate. The latter still retains its share of TVGN.[18]
  • July 16 CBS agreed to sell CBS Outdoor International to Platinum Equity for about $225M.[19]

Corporate governance[edit]

CBS Corporation's headquarters is in the CBS Building in New York City

The board of directors of CBS Corp. include:

Assets[edit]

Further information: List of assets owned by CBS

Accounting ratios[edit]

CBS Corporation Accounting Ratios
Fiscal Year 2005 2004 2003 2002 2001
Fiscal Year End Date 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01
Receivables Turnover 5.3 5.3 6.1 6.6 6.5
Receivables—Number of Days 86.2 68.4 54.6 53.4 58.5
Inventory Turnover 8.8 10.3 11.7 11.0 10.0
Inventory—Number of Days 41.0 35.0 30.8 32.7 36.2
Gross Property, Plant & Equipment Turnover 2.8 2.9 2.5 2.5 2.5
Net Property, Plant & Equipment Turnover 4.5 4.8 4.4 4.0 3.7
Depreciation, Depletion & Amortization
 % of Gross Property, Plant & Equipment 9.8% 10.4% 9.4% 9.6% 32.9%
Depreciation, Depletion & Amortization
Year to Year Change (Millions US Dollars) -31.1 -19.0 5.4 -213.9 86.1
Depreciation, Depletion & Amortization
Year to Year % Change -38.4% -19.0% 5.7% -69.3% 38.7%
Source: CorporateInformation CBS Corporation Company Snapshot

See also[edit]

Notes[edit]

  1. ^ The Viacom-CBS split was structured in such a way that the existing company (Viacom) changed its name to CBS Corporation, while the new Viacom is actually a newly founded spin-off company. For this reason, the newly rechristened CBS Corporation is actually the same company (Viacom) that was founded in 1986. The 1986 Viacom, in turn, was the successor to a previous company also known as Viacom and founded in 1971.

References[edit]

  1. ^ a b c d e f g h "CBS CORP 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 14, 2014. 
  2. ^ a b "CBS CORP 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. May 8, 2014. 
  3. ^ a b "2010 Form 10-K, CBS Corporation". United States Securities and Exchange Commission. 
  4. ^ "Certain Federal Income Tax Information Regarding the Separation of Viacom Inc." (PDF). CBS Corporation. January 12, 2006. Archived from the original on 2008-06-25. Retrieved 2008-11-30. 
  5. ^ "Contact Info." CBS Corporation. Retrieved on November 3, 2009.
  6. ^ "CBS AND DIC Entertainment Unveil 2006/07 Children's Programming Slate". Burbank, California: CBS Corporation. 2006-03-30. Retrieved 2008-12-27. [dead link]
  7. ^ Consoli, John (June 21, 2006). "DIC, KOL to Produce On CBS". MediaWeek. Archived from the original on 2006-07-13. Retrieved 2008-11-30. 
  8. ^ "CBS Corporation To Sell Local TV Stations In Four Markets To Cerberus Capital Management, L.P". CBS Corporation. 2007-02-07. Retrieved 2008-12-27. [dead link]
  9. ^ [1][dead link]
  10. ^ "CBS Invests in Virtual World Content Developer". Archived from the original on 2007-07-26. 
  11. ^ "CBS Corporation acquires MaxPreps, the leading nationwide high school sports network online; business to be part of CSTV: College Sports Television". CBS Corporation. 2007-03-20. Retrieved 2012-01-02. 
  12. ^ "CBS Corporation announces the creation of the CBS Interactive Audience Network". CBS Corporation. 2007-04-12. Retrieved 2012-01-02. 
  13. ^ Music site Last.fm bought by CBS, BBC, May 30, 2007
  14. ^ CBS Corporation to acquire CNET Networks, inc., CBS Press Release, May 15, 2008
  15. ^ "CNET's Content To Boost CBS Coverage". New York: cbs3.com. July 2, 2008. Retrieved 2008-12-27. [dead link]
  16. ^ Andreeva, Nellie. "CBS Poised To Buy Half Of TV Guide, Partner With Lionsgate." Deadline.com (March 22, 2013)
  17. ^ Andreeva, Nellie. "It’s Official: CBS Acquires Half Of TV Guide, Partners With Lionsgate." Deadline.com (March 26, 2013)
  18. ^ Andreeva, Nellie. "It’s Official: CBS Takes Full Control Of TVGuide.Com, Acquiring Lionsgate’s 50%." Deadline.com (May 31, 2013)
  19. ^ "CBS Sells Overseas Billboard Business". Deadline.com. Retrieved July 16, 2013. 

External links[edit]