Viacom Growth Strategy

Good Essays
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
…show more content…
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
…show more content…
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”

Related Documents

  • Decent Essays

    III. EUROZONE RETAIL PMI • Sales fall modestly for third consecutive month in January. • Downturns recorded in each of the ‘big-three’ Eurozone economies. • Job creation sustained despite recent weakness in sales. The headline Markit Eurozone Retail PMI – which tracks month-on-month changes in like-for-like retail sales in the bloc’s biggest three economies combined – remained below the neutral 50.0 mark in January, registering 48.9.…

    • 935 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Swot Analysis Of Next Plc

    • 759 Words
    • 4 Pages

    NEXT did not make any acquisitions in last 10 years and NEXT plc’s capex requirements are very low at 25 percent of profits on average (ukvalueinvestor.com, 2016). All these small features made NEXT’s share climbed at 8000 pence in 2015. Figure 1. Shows that earning per share (EPS) growth and dividend growth both lagged by Total revenue…

    • 759 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Tesco's Financial Summary

    • 1142 Words
    • 5 Pages

    Tesco see the biggest reduction – with decreasing Trade Payables and a significant reduction in short term borrowings between 2012 and 2013. Tesco’s Non-Current Liabilities have decreased by £535 million from 2009–2013. This supports comments in the Tesco’s 2013 financial report in which the financial director highlighted his aim to reduce net debt significantly over the medium term. However closer inspection shows a rising trend from a low in 2011. Sainsbury’s Non-Current Liabilities on the other hand shows a relatively steady but manageable increase.…

    • 1142 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    The company’s total assets are 190,554,000,000. Ford’s debt to equity ratio is 10.95 which is due to the capital intensive nature of the automotive industry. For 2012, Ford’s net income was 5,665,000,000 which indicates the company is currently 75% less than the over $20 billion profit in 2011. Additionally, the cash flow from investing activities has decreased from $6.9 billion in 2010 to -$14 billion in 2012. Short-term debt has increased in the last couple of years, it is still nearly 50% of the over $60 billion in 2009.…

    • 2346 Words
    • 10 Pages
    Decent Essays
  • Decent Essays

    The revenue for all three year had big difference; for example, 2012 to 2013 had $639,000 decrease of revenue, 2013 through 2014 we see an increase in revenue of $2,544,000 (Yahoo Finance, 2016). General Electric revenue from 2012,…

    • 710 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Another factor was that goes along with poor management were the weak sales and increased costs. In 2010, Hostess’ sales were $2.5 billion, which was down 11% since 2008 and 28% from 2004. At the time, Twinkies continued to be the top seller, Hostess sold 323 million Twinkies in 2011. By the beginning of 2012, their debt had accumulated to about $860 million, on top of that, also had $1.4 billion in liabilities and less than $1 billion in assets. This was also due to the large amount of interest due on their debt, which was roughly While going through this hard time, Silver Point,…

    • 1170 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Alcoa Inc Case Analysis

    • 879 Words
    • 4 Pages

    18 % down from the same quarter of 2014 and 6 % down from the previous quarter. The reasoning given by the company for the decline in revenues was that it was a “composition of two opposing factors. One is a 7 % growth year over year mainly to aero, as well as acquisitions, and that gets offset by price declines as well as divestitures and closures of 25 %.” Looking at segment wise performance, the Value-Add segment earned revenue of $ 3.3 billion and an adjusted EBITDA of $ 448 million in the quarter. Under the value-add segment, the Global Rolled Products (GRP) business recorded an after tax operating income of $ 52 million boosted by an 18 % year-over-year growth in auto sheet shipment. Driven by a shift in revenue mix towards higher margin products, the adjusted EBITDA per metric ton increased 19 % year-over-year.…

    • 879 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Between 2012 and 2013 the immigrant population increased by 1.3 percent or 523,000. The number of illegal immigrants in the U.S is 11.3 million in 2014 and in 2012 it was 11.4 million, so it has decreased .1 million in two2 years which is heading…

    • 711 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    As consumption spending and business investment dried up, massive job loss followed. The US labor market lost 8.4 million jobs, about 6.1% of payroll employment. Some 46.2 million Americans lived below the official poverty level in 2010, which is about 15.1 percent of the population. The number of people living in poverty grew by 27 percent between 2006 and 2010. Poverty increased greatly among the Hispanics and African Americans, households of women, and working class adults between the ages of 18-34.…

    • 1857 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Motorola Failure Case Study

    • 7527 Words
    • 31 Pages

    In 2001 calendar year alone, Motorola's incomes dropped by almost $8 billion, to $30 billion; its losses were around $4 billion. Chris launched the new digital ready phone “Razr”. But before Chris’s efforts on Razr were starting to pay off, He was asked by the board to leave the position of CEO of Motorola. In the first week of January 2004 Chris left Motorola. Mr. Ed Zander was made the new CEO of the company after Chris Galvin’s departure.Three months after Chris Galvin left Motorola, the organization's numbers started to pivot drastically.…

    • 7527 Words
    • 31 Pages
    Decent Essays