Why ViacomCBS Might Still Be Too Small

“Relative to Disney or Comcast, it still looks like a pimple,” says media analyst Rich Greenfield

CBS and Viacom’s long-awaited merger into ViacomCBS will create more opportunities for streaming and let it compete better in a post-cable world — but it’s still too small, some analysts say.

The new company will boast a combined $28 billion in annual revenue. That sounds like a lot, but compare that to Disney, which earned $59.4 billion last year — and that’s before Disney fully integrates 20th Century Fox. Disney’s business is more diversified — including some of the world’s most popular theme parks — and its shares trade at a much higher multiple, but the comparison demonstrates where ViacomCBS stands among its peers.

However, according to CFRA research analyst Tuna Amobi, as a combined company ViacomCBS is “better positioned to be an active player in future industry consolidation in the face of significantly larger competitors.”

And to compete, the newly minted company is likely to go on a buying spree, according to media analyst Rich Greenfield.

“This is step one of many steps. They’re going to buy a lot more than just this. They’re still too small. Relative to…

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