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Restructuring / Turnaround Strategies Case Study
Case Title:
Viacom: Restructuring For Growth
Publication Year : 2005
Authors: Supriyo Bose, Kumar Satyaki Ray
Industry: Television cable pay and Broadcast Network
Region: US
Case Code: RTS0132K
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
Since early 2004, Viacom Inc., the third largest media company in the world, exhibited a massive drop in share prices, with growth investors being discouraged by presence of slow-growth businesses like broadcast TV and radio, and value investors being put-off by high risk business of cable networks. In order to restore growth in the company, Sumner M. Redstone, the Chairman and CEO of Viacom decided to unlock value and split the company into a high-growth, high-risk division and a slow-growth division.
The case, while highlighting on the different divisions of Viacom, also focuses on the restructuring of Viacom into two separate publicly traded companies.
Pedagogical Objectives:
- To understand the dynamics of business restructuring process
- To critically analyze the business model of Viacom and its sustainability in the long-run
- To understand how revenue maximisation is achieved by unlocking value
- To understand the optimum mix of business portfolio.
Keywords : Viacom; Viacom?s businesses; New Viacom; CBS Corporation; Viacom?s history; Restructuring / Turnaround Strategies Case Study; Viacom?s famous brands; Infinity; Viacom outdoor; Sumner on Redstone