Moonves says CBS will need M&A to compete with Comcast, Disney

CBS just closed a deal to acquire Australian broadcaster Network Ten.

CBS CEO Les Moonves admitted that, with all the potential media consolidation in the works and the scale of his company’s competitors, CBS will eventually have to pursue M&A or partnerships.

“Now we’re competing against monstrous companies. Disney is six times as big as we are. Comcast is six times as big as we are. Netflix market cap is huge. Now Amazon, the number one company in the world, is producing content. We’re sort of like an old fashioned production company. We’re a small guy. Eventually are we going to need to do partnerships with other content companies and distribution companies? The answer is probably yes,” Moonves told CNBC.

Besides potential partnerships, Moonves said that CBS would need to continue developing its own series like “Star Trek: Discovery,” which is exclusive to CBS’ streaming service All Access.


Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

RELATED: CBS Q3 entertainment, local media revenues sink amid slower ad sales

Moonves also acknowledged the current regulatory environment and the contentious review process between the Justice Department and the proposed $85 billion AT&T-Time Warner merger.

“I've been surprised a lot in the past few weeks that the Department of Justice objected to this deal. It didn't seem like something they would do, but God only knows what the reasons are for stopping that,” Moonves told the network.

Reports are currently swirling about Comcast, Sony and Verizon all being interested in buying a set of 21st Century Fox assets including film and television studios, international assets like Sky and Star, and Fox’s cable networks including FX and National Geographic as well as the company’s stake in Hulu.

While CBS doesn’t appear to be involved in any domestic M&A activity at the moment—despite just closing a deal to spin off its radio business, which merged with Entercom—the company did just acquire Australian broadcaster Network Ten and several of its digital properties.

Suggested Articles

Altitude Sports is suing Comcast over alleged antitrust law violations.

Xumo, a free, ad-supported streaming video service, today announced it’s adding ABC News Live to its platform in the U.S. and Canada.

AT&T is rounding out the executive team for its WarnerMedia Innovation Lab, which is set to open in New York City in spring 2020.