Viacom to be split into two entities

NEW YORK, June 15 (UPI) -- U.S. media conglomerate Viacom will be divided into two companies, CBS Corp. and Viacom Inc., to boost shareholder returns.

CBS will consist of the CBS and UPN broadcast networks, Viacom television stations group, Infinity Broadcasting, Viacom Outdoor, the CBS, Paramount and King World television production operations, as well as Showtime, Simon & Schuster and Paramount Parks, the Hollywood Reporter said Thursday.

The new Viacom will consist of MTV and all the old Viacom's ad-supported cable networks: VH1, Comedy Central, Nickelodeon, Nick at Nite, CMT: Country Music Television, Spike TV, TV Land and BET, as well as the Paramount Pictures film studio, Paramount Home Entertainment and Famous Music.

Sumner Redstone, current head of the as-yet-undivided Viacom, will remain as chairman and controller shareholder of both entities. The board made the decision Wednesday to split Viacom.

"We believe that this transaction will enable Viacom shareholders to fully benefit from the important gains we realized in building this company by unlocking our significant untapped potential and creating new leadership positions, maximize earnings growth and fully exploit our considerable strengths," Redstone said.

Shari E. Redstone, his daughter, is expected to be vice chairman of both companies.