• October 6, 2005

Viacom Inc. will divide itself into two companies, the media conglomerate told federal regulators Wednesday--forming one company that includes the CBS network and another that includes MTV, Paramount Pictures, and other cable properties.

The new Viacom, Inc. will consist of cable networks and entertainment brands including MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, Country Music Television, Spike TV, TV Land, BET, Paramount Pictures, Paramount Home Entertainment, and Famous Music. The new CBS Corp. will consist of CBS and UPN; the CBS television stations group; Infinity Broadcasting; the CBS, Paramount and King World television production and syndication operations; cable brand Showtime; Viacom Outdoor; Paramount Parks; and Simon & Schuster.

Leslie Moonves will run CBS Corp., while Tom Freston will run the new Viacom; Sumner Redstone will remain chairman of both companies. If approved by the Securities and Exchange Commission, investors would receive a half share of each new company for every Viacom share they currently hold. As yet, there is no specific date for the completion of the split.

--Ross Fadner