Viacom Corporation/CBS Inc. Merger
In the proposed merger between Viacom Corp. and CBS Inc., Analysis Group was retained on behalf of Viacom by antitrust counsel Shearman & Sterling. We worked closely with the staff at the U.S. Department of Justice to evaluate and resolve competitive issues involving advertising and licensing in the television and cable industries. Central to the investigation was an evaluation of competition in licensing syndicated programming content into the prime time access period on the traditional network affiliates, CBS, NBC, and ABC.
An initial review of "shares" of clearances and ratings in prime time access suggested that the proposed merger might present competitive issues, whether through a traditional consideration of structural concerns, or through a unilateral effects concern resulting from close substitutes falling under common control. A more careful examination of the competitive dynamic in access programming indicated that neither was the case. The Department of Justice closed its investigation.