Sumner Redstone’s Viacom has announced a whopping $785 Million write down. This comes, in part, as a result of a major corporate reorganization that the company has undertaken in the past year as part of an effort to improve itself.
The write down announcement comes after massive layoffs at its networks including MTV, VH1, Comedy Central and its Paramount Studios.
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$400 million alone out of the $785 million comes from what Viacom called “strategic acquisitions.”
On the bright side, the company projected an annual cost savings of $350 million.
“This strategic realignment, which is largely completed, will allow us to sharpen our focus on driving long-term growth in a rapidly changing industry, ” said Viacom president/CEO Philippe Dauman in a statement. “We will transition rapidly into the future, generate substantial cost savings and continue to increase our investment in original programming to bring our audiences great content in new and groundbreaking ways.”
“Viacom has a powerful combination of world-class brands and popular content that is driving our business across the globe. We will continue to lead the way in connecting our vibrant brands to audiences through both traditional and innovative new platforms, ” he added.
“This strategic realignment, which is largely completed, will allow us to sharpen our focus on driving long-term growth in a rapidly changing industry. We will transition rapidly into the future, generate substantial cost savings and continue to increase our investment in original programming to bring our audiences great content in new and groundbreaking ways.”
The biggest loser here seems to be Sumner Redstone. The vultures have been circling the 92 year old owner of both Viacom and CBS for some time now. Executives and investors at both companies are already positioning themselves to take over after he finally retires, or dies.
So this announcement cannot be good news for the man who is clinging to power there like a baby to its blanket. He clearly would not want to go out on such a negative note.
