Viacom Growth Strategy

761 Words 4 Pages
Viacom is a media company that is based in New York, New York. Originally founded in 1952, They have hold of entertainment in 165 countries, reaching more than 3 billion people around the globe. They are most known for their television networks, such as MTV, Nickelodeon, and Comedy Central.
Viacom has seen a severe fluctuation with revenue over the past decade. The peak of the company’s revenue was seen five years ago, as the they have been seeing a steady decrease since 2011. For comparison, in 2011 Viacom’s revenue came in at $14.91 billion, while their 2015 revenue was a staggering 1.13 billion lower, coming in at $13.78 billion (marketwatch). The same is true for their cost of goods sold, or cogs, as it totaled just over $7 billion in
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In 2015, it added to be 18.4 billion, though this is more than a billion less than it had been the previous year. They have seen noticeable jumps in their accounts payable, along with long term debt. The most recent accounts payable totaled 506 million, nearly 3 million more than it had been in 2012. The long term debt took a steeper incline though, raising to more than 12 billion. In 2011, this number had only been 7.34 billion, and the biggest jump took place in 2013, when it saw a 3 billion dollar upsurge. Both Viacom’s deferred taxes, credit and debit, decreased however. In 2015 their deferred taxes-credit was 223 million, a full 600 million less than it had been in 2011. Likewise, their deferred taxes-debit decreased more than 700 million, totaling just 45 million in 2015.
Another decrease the balance sheet displays, is liabilities and shareholders equity. It reached a meager 22.22 billion in 2015, the first time it had dipped below 23 billion in the past years. The common equity of Viacom dropped more than five billion dollars, accumulating just 3.54 billion. Likewise, their total equity dropped to 3.82 billion, more than 4 billion less than it had been in 2011. Their retained earnings increases substantially, however. In just five years, it a has amassed to 14.78 billion, more than six billion more than it had been five years
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In 2014, the share price for a stock into Viacom inc., would cost a person over eighty dollars, but last year it would cost just over thirty. In 2008, however, the stock price was at an all-time low, costing just pennies over thirteen dollars. The rise of stock, especially in 2014, was most likely due to them expanding, and further globalizing. They had purchased Channel 5 in the UK, for $757 million, grasping yet another major channel in a foreign country. Viacom’s president, Philippe Dauman, stated that the purchase, “...will dramatically increase Viacom’s investment in content produced in the UK”

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