Why ViacomCBS Might Still Be Too Small

Trey Williams

CBS and Viacom’s long-awaited merger into ViacomCBS will create more opportunities for streaming and let it compete better in a post-cable world — but it’s still too small, some analysts say. The new company will boast a combined $28 billion in annual revenue. That sounds like a lot, but compare that to Disney, which earned $59.4 billion last year — and that’s before Disney fully integrates 20th Century Fox. Disney’s business is more diversified — including some of the world’s most popular theme parks — and its shares trade at a much higher multiple, but the comparison demonstrates where ViacomCBS stands among its peers. However, according to CFRA research analyst Tuna Amobi, as a combined company ViacomCBS is “better positioned to be an active player in future industry consolidation in the face of significantly larger competitors.” Also Read: CBS and Viacom Announce Long-Awaited Merger - Viacom Valued at $12 Billion And to compete, the newly minted company is likely to go on a buying spree, according to media analyst Rich Greenfield. “This is step one of many steps. They’re going to buy a lot more than just this. They’re still too small. Relative to Disney or Comcast it still looks...

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