Viacom announced 2005 Q1 results this morning, and conducted the quarterly conference call.

Long story short…it was a good quarter. Overall revenue was up 5% to $5.6B, and operating income was up 7% to $1.1B. By far, cable was the starâ€â€contributing 19% growth in revenue and 20% growth in operating income.

The biggest part of the conference call was Sumner Redstone selling their plan to split the company into two separate companies. The first would be considered the “high growth†company, and would be led by Tom Freston. It would include:

•MTV Networks (which includes Nick, Nick at Night, Spike, Sci Fi, VH1, etc.)

•BET

•Paramount Pictures

•Paramount Home Entertainment

•Internet/Online

This would be considered the “content†side of the company, and would focus on the media brands. In the business world, this company would be considered “asset lightâ€Â, and as such would be able to spur rapid growth and be nimble to market conditions. (In other wordsâ€â€this would be the high growth stock.)

The second company would consist of all the “hard assetsâ€Â, in businesses that are stable, but not necessarily high growth. (More of a steady, “income†stock…). This company would be led by Les Moonves and would include:

•CBS & UPN networks

•Television stations

•Outdoor advertising

•Infinity (radio stations)

•Showtime

•Simon & Schuster

•Paramount Parks

•Theater operations

Other than the mention of Paramount Parks as being part of the “CBS companyâ€Â, nothing was mentioned regarding the future of Paramount Parks…

Joel

That's interesting. In my opinion, I think Viacom would be crazy to sell off the parks now. After all of these years investing money into the park, and with all the movie themed rides and attractions. I know it's possible they could sell them, but whoever did buy, would have to invest alot of money unbranding the Paramount Parks. (Removing Paramount from the entire park). I would think that would cost some money.

Or, they would have to pay a ton of money to keep the paramount name and keep branding the rides.

If they sell the parks they would lose a lot of money i think.