Case Study

Case Study

Please read the case and answer these three question as essay not as question and answer (200 words each minimum)

1) How did Viacom manage to grow rapidly in 1990s?

2) Evaluate the major acquisitions made by Viacom. Have they created value for the firm, for the shareholders? Why or why not?

3) What are some the options available for Viacom?

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Solution Preview

Notably, CBS broadcasting established Viacom as an independent company, a move that complied with the regulations imposed by the U.S Federal Communications Commission that barred TV networks from owning cable TV systems or syndicating their programs. However, Viacom separated from CBS in 1971 after which it became part of the largest cable operators in the U.S. With an increasing need to enhance profit growth, the company’s executive felt the need to develop and expand Viacom’s strengths in content programming. Despite the high costs associated with content programming, this was a key aspect of the future success of the company. As such, the company worked on building and expanding its MTV channels.

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