ViacomCBS CEO Bob Bakish on Streaming Mergers

ViacomCBS Prioritizes Organic Streaming Growth

During today’s WSJ Tech Live conference, ViacomCBS CEO Bob Bakish indicated a decreased interest in potential mergers, such as one involving Comcast. The executive emphasized the company’s commitment to its current streaming strategy as the most effective means of maximizing shareholder value.

Bakish also suggested that Paramount+, the company’s streaming service, is still in its nascent stages, effectively minimizing the notion that a merger would be essential for its success.

Response to Merger Speculation

When questioned directly regarding potential mergers and acquisitions (M&A), Bakish refrained from providing a definitive response. Instead, he highlighted the positive growth Paramount+ has demonstrated throughout the year.

“Paramount+ is only seven months old, and therefore it’s still early in its development,” he stated. He further noted strong subscriber gains in the first two quarters, despite a relatively limited content offering at the time.

Evolution of Paramount+

It’s important to recognize that describing Paramount+ as a completely new service isn’t entirely accurate.

The platform evolved from CBS All Access, undergoing a rebranding and expansion to incorporate Viacom content following the 2019 merger of CBS and Viacom. While it represents a new product with an expanded library, the underlying service has been operational for several years.

Currently, Paramount+ has yet to establish itself as a significant competitor to leading streaming services like Netflix and Disney+, which boast subscriber bases of over 209 million and 116 million, respectively.

Growth Strategies Beyond Mergers

ViacomCBS is actively pursuing alternative avenues for growth, including international joint ventures. A recent example is the partnership with Comcast to launch SkyShowtime in Europe.

Despite Bakish’s downplaying of M&A activity, reports suggest that Comcast’s NBCU and ViacomCBS have explored collaborative opportunities, including potential streaming service bundles featuring Peacock and Paramount+.

Focus on Execution and Asset Utilization

Bakish reiterated that the primary focus remains on delivering shareholder value.

“We believe that executing our organic plan in streaming represents the strongest path to achieving this, particularly given our current stock valuation,” he explained.

He cautioned that not all mergers are successful, referencing instances where deals have been reversed due to poor performance. He underscored the importance of effective execution.

Bakish emphasized the strength of ViacomCBS’s assets, including a major Hollywood studio, a century-old content library, and substantial ongoing production capabilities.

“Leveraging this content base on a streaming platform like Paramount+ is already generating momentum, and we anticipate continued growth. This represents a highly promising direction for the company,” he concluded.

Subscriber Numbers and Reporting

Historically, CBS did not publicly disclose subscriber numbers for CBS All Access separately from Showtime. This practice continues at ViacomCBS, with the company reporting that Paramount+ and Showtime OTT collectively surpassed 42 million paid global subscribers in the second quarter.

This combined reporting approach reflects the company’s strategy of integrating its streaming offerings.