outlined terms of its coming split, saying in a regulatory filing that shareholders will get half a share of the new CBS and half a share of the new Viacom for each Viacom share they hold.
In a filing with the
Securities and Exchange Commission
, the company didn't provide a specific date for the completion of the split, which will disassemble one of the world's biggest media companies.
Chairman Sumner Redstone first detailed his proposal seven months ago. By splitting into a growth side, comprising Viacom's MTV Networks and Paramount, and a value side made up of CBS, Infinity radio and Viacom Outdoor, Redstone hopes to clarify the investment thesis for Wall Street.
In the SEC filing Redstone wrote that, "In many ways, this separation is a natural extension of the path we laid out in creating Viacom. We recognize the need to adapt to a changing competitive environment and we believe that the separation of New Viacom and CBS Corp. will best serve our stockholders."
The New Viacom 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.
CBS 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.
The CBS side spins off a great deal of cash, while the Viacom side is expected to be more nimble and fast growing.
Les Moonves will run the CBS operation while Tom Freston will run the new-look Viacom. Redstone will remain chairman of both companies.
The news did little to stimulate the stock Wednesday, as Viacom dropped 43 cents to $32.17 at midday.