CBS (Columbia Broadcasting System) is a cornerstone of American media, renowned for its television networks, news divisions, and entertainment franchises. But ever wondered who owns CBS?
Its ownership structure has evolved dramatically over the years, shaped by mergers, spin-offs, and the rise of streaming.
This article breaks down CBS’s current ownership, its parent company, and the key players influencing its future.
Historical Ownership of CBS
CBS is a subsidiary of Paramount Global (NASDAQ: PARA). The largest shareholder is National Amusements, Inc. (NAI), controlled by media mogul Shari Redstone. NAI holds 77% of voting shares, giving it ultimate control over corporate decisions.
Early Years and Independence (1927–1995)
- Founded in 1927 by William S. Paley, CBS grew into a radio and TV powerhouse.
- Operated independently until 1995, when it was acquired by Westinghouse Electric Corporation.
Viacom Era and Split (1995–2006)
- Westinghouse renamed itself CBS Corporation in 1997.
- In 2000, Viacom (parent of MTV, Nickelodeon, and Paramount) acquired CBS.
- 2006 Split: CBS and Viacom became separate entities again due to strategic differences.
Reunification with Viacom (2019)
- CBS and Viacom remerged in 2019 to form ViacomCBS, later rebranded as Paramount Global (2022).
List of Major CBS Shareholders
The ownership of CBS, under parent company Paramount Global, is divided among a mix of controlling entities, institutional investors, and public shareholders.
Below is a detailed breakdown:
1. National Amusements, Inc. (NAI)
Ownership Stake
- Economic Interest: ~10% of total shares.
- Voting Power: 77% of voting shares (via Class A super-voting stock).
Role and Influence
- NAI is the Redstone family’s investment vehicle, founded by Sumner Redstone in the 1980s.
- Despite owning only 10% of the economic stake, NAI’s super-voting shares grant it majority control over board appointments, mergers, and strategic decisions.
- Key Figure: Shari Redstone (Chair of Paramount Global) oversees CBS’s integration into Paramount’s streaming-first strategy.
History
- Acquired Viacom in 1987 and CBS in 1999, consolidating media power.
- Survived legal battles (e.g., 2016 feud with Viacom CEO Philippe Dauman) to retain control.
2. Institutional Investors
These firms hold large stakes but lack voting control due to NAI’s super-voting structure:
The Vanguard Group (10.3%)
- The largest institutional shareholder primarily through index funds like Vanguard Total Stock Market ETF.
- Passive investors focused on long-term growth, not active management.
BlackRock (7.6%)
- Holds shares via funds such as iShares Core S&P 500 ETF.
- Advocates for ESG (environmental, social, governance) policies but has limited sway over CBS’s operations.
State Street Corporation (4.9%)
- Manages assets through funds like SPDR S&P 500 ETF Trust.
- Known for proxy voting aligned with board recommendations.
Other Institutional Holders
- Includes Fidelity Investments, Morgan Stanley, and Geode Capital.
- Combined, institutions own ~45% of Paramount’s non-voting shares.
3. Public Shareholders
Ownership Stake: ~30% of total shares.
Trading Details
- Paramount Global’s Class B non-voting shares trade on the Nasdaq under PARA.
- Retail investors, hedge funds, and smaller institutions buy/sell these shares.
Recent Trends
- PARA shares have struggled in 2023, down ~12% YTD due to streaming losses and debt concerns.
- Dividend suspended in 2023 to prioritize Paramount+ investments.
4. Employee Stock Ownership
- Paramount Global offers stock options and restricted shares to executives.
- CEO Bob Bakish holds ~0.03% of shares, aligning his incentives with company performance.
Implications of the Shareholder Structure
- Control vs. Ownership Divide: NAI’s 77% voting control allows Shari Redstone to steer Paramount Global’s strategy (e.g., Paramount+ focus) despite owning only 10% of the company.
- Institutional Investor Limits: Large firms like Vanguard and BlackRock hold significant equity but cannot challenge NAI’s decisions.
- Retail Investor Risks: Public shareholders bear financial risks (e.g., stock volatility) without voting power to influence governance.
Who Controls CBS?
CBS is controlled by Shari Redstone and National Amusements, Inc., through a dual-class share structure that grants NAI 77% voting power. While institutional and public shareholders own significant stakes, they lack the ability to influence corporate decisions.
This control has allowed the Redstone family to steer CBS through mergers, streaming wars, and financial challenges, but questions about succession and long-term strategy remain.
Below is a detailed breakdown of who controls CBS and how this power is wielded.
1. National Amusements, Inc. (NAI): The Controlling Entity
Ownership Structure
- Economic Stake: NAI owns ~10% of Paramount Global’s total shares.
- Voting Power: NAI controls 77% of voting shares through Class A super-voting stock.
Key Figures
- Shari Redstone: Chair of Paramount Global and President of NAI.
- Daughter of late media mogul Sumner Redstone, who built the family’s media empire.
- Oversees CBS’s integration into Paramount’s streaming-first strategy.
- Sumner Redstone’s Legacy:
- Acquired Viacom in 1987 and CBS in 1999, consolidating control over both entities.
- Structured NAI to retain control via super-voting shares, ensuring family dominance.
Decision-Making Authority
- Board Appointments: NAI’s voting power allows it to appoint a majority of Paramount Global’s board members.
- Strategic Moves: Shari Redstone spearheaded the 2019 Viacom-CBS reunion and the 2022 rebrand to Paramount Global.
- Streaming Focus: NAI has prioritized investments in Paramount+ and Pluto TV, despite short-term losses.
2. Dual-Class Share Structure: How Control is Maintained
Paramount Global has two classes of stock:
- Class A (Super-Voting Shares):
- Held almost exclusively by NAI.
- Each share grants 10 votes, ensuring NAI’s 77% voting control.
- Class B (Non-Voting Shares):
- Traded publicly on Nasdaq (ticker: PARA).
- Owned by institutional and retail investors, with no voting power.
This structure allows NAI to maintain control while raising capital from public markets.
3. Shari Redstone’s Role in Controlling CBS
As Chair of Paramount Global, Shari Redstone is the de facto controller of CBS. Her influence extends to:
- Corporate Strategy:
- Pushed for the Viacom-CBS merger to compete in streaming.
- Oversees Paramount+’s growth and content investments (e.g., Star Trek, NCIS).
- Leadership Decisions:
- Appointed Bob Bakish as CEO of Paramount Global in 2016.
- Backed Bakish’s streaming-first vision despite investor skepticism.
- Crisis Management:
- Navigated the 2023 Hollywood strikes and debt concerns ($16.8B).
- Explored asset sales (e.g., BET Media Group) to reduce financial pressure.
4. Institutional Investors: Limited Influence
While institutional investors like Vanguard and BlackRock own significant stakes, their influence is limited:
- Voting Restrictions: Class B shares grant no voting rights.
- Passive Role: Most institutions are index funds focused on long-term growth, not active management.
- Proxy Voting: Institutions typically support board recommendations, further entrenching NAI’s control.
5. Public Shareholders: No Control
- Ownership Stake: ~30% of total shares.
- Trading Details: Class B shares trade on Nasdaq (PARA).
- Risks: Public shareholders bear financial risks (e.g., stock volatility) without voting power.
6. Historical Battles for Control
Sumner Redstone’s Health Crisis (2016):
- Shari Redstone ousted Viacom CEO Philippe Dauman to prevent a sale of NAI’s stake.
- Cemented her control over CBS and Viacom.
CBS Lawsuit (2018):
- CBS sued NAI to block Shari Redstone from merging CBS and Viacom.
- Lawsuit dropped after Sumner Redstone’s health deteriorated, paving the way for the 2019 merger.
7. Future of Control
- Succession Planning: Shari Redstone, 69, has not publicly named a successor.
- Potential Sale: Speculation persists about Paramount Global being acquired by a tech giant (e.g., Apple, Amazon) or merging with a rival (e.g., Warner Bros. Discovery).
- Streaming Profitability: NAI’s control hinges on Paramount+ achieving profitability by late 2024.
Annual Revenue and Net Worth of CBS
CBS’s revenue history reflects its evolution from a standalone broadcaster to a key subsidiary of Paramount Global. Below is a 10-year breakdown with year-over-year (YoY) growth rates, including projected 2024 figures:
| Year | Revenue (USD Billion) | YoY % Change | Notes |
|---|---|---|---|
| 2014 | $13.8 | — | CBS Corporation operates independently. |
| 2015 | $13.9 | +0.7% | Steady growth from TV licensing and ads. |
| 2016 | $13.2 | -5.0% | Decline due to lower ad sales and cord-cutting. |
| 2017 | $13.7 | +3.8% | Recovery driven by NFL rights and NCIS syndication. |
| 2018 | $14.5 | +5.8% | Streaming gains (CBS All Access) and Super Bowl ad revenue. |
| 2019 | $15.0 | +3.4% | Final year as CBS Corporation before Viacom merger. |
| 2020 | $25.3 | +68.7% | Post-Viacom merger; combined revenue includes Paramount, MTV, and Showtime. |
| 2021 | $28.6 | +13.0% | Streaming surge (Paramount+ launch) and film rebound (A Quiet Place II). |
| 2022 | $30.1 | +5.2% | Rebranded as Paramount Global; strong ad sales and Top Gun: Maverick. |
| 2023 | $30.5 | +1.3% | Slower growth due to streaming losses and strikes. |
| 2024* | $31.5 | +3.3% | Projected recovery from Paramount+ price hikes and cost-cutting. |
Net Worth (Market Capitalization)
Paramount Global’s net worth, measured by market capitalization, has fluctuated due to industry shifts and streaming investments:
| Year | Market Cap (USD Billion) | Key Events |
|---|---|---|
| 2014 | $23.5 | CBS Corporation valued for its stable TV business. |
| 2015 | $24.0 | Steady performance despite cord-cutting fears. |
| 2016 | $18.5 | Declined amid ad revenue drops and Viacom split. |
| 2017 | $20.0 | Rebound from NFL and streaming deals. |
| 2018 | $22.0 | CBS All Access growth boosts valuation. |
| 2019 | $12.0 | Post-merger dilution; ViacomCBS faces skepticism. |
| 2020 | $15.0 | Streaming hype during pandemic lifts shares. |
| 2021 | $30.0 | Peak valuation as Paramount+ gains 32M subscribers. |
| 2022 | $18.0 | Market correction; streaming losses and recession fears. |
| 2023 | $9.5 | Debt concerns ($16.8B) and Hollywood strikes batter shares. |
| 2024* | $11.0 | Projected rebound on Paramount+ profitability and asset sales. |
Key Financial Trends
Pre-Merger Stability (2014–2019)
- CBS thrived as an independent broadcaster but faced pressure from cord-cutting.
- Viacom merger aimed to scale streaming and content production.
Post-Merger Volatility (2020–2023)
- Revenue grew via streaming (Paramount+ reached 63M subs by 2023) but profits lagged.
- Market cap collapsed in 2023 due to debt and competition.
2024 Outlook
- Paramount+ aims for profitability by late 2024, supported by price hikes and ad-tier growth.
- Asset sales (e.g., BET Media Group) could reduce debt.
CBS Market Share and Competitors
CBS holds a strong position in broadcast TV and is growing in streaming, but it faces fierce competition from Disney, Netflix, and Warner Bros. Discovery. Its success hinges on leveraging live sports, iconic franchises, and cost-effective streaming strategies to close the gap with rivals.
CBS’s Market Share
CBS is one of the leading broadcast networks in the U.S., with an estimated 20% share of the traditional TV audience and a growing presence in streaming via Paramount+ and Pluto TV.
Broadcast Television
Primetime Viewership: ~30% market share (leader among U.S. broadcasters).
- Strengths: Hit shows like NCIS, Young Sheldon, and 60 Minutes.
- Live sports: NFL games and NCAA March Madness.
Advertising Revenue: ~25% of the U.S. broadcast TV ad market.
- Strengths: High ratings for live events (e.g., Super Bowl, Grammys).
Streaming (Paramount+)
U.S. Market Share: ~6% (as of 2023).
- Subscribers: 63 million globally (Q3 2023).
- Strengths: Exclusive CBS content (Star Trek, Yellowstone prequels) and live sports.
Free Streaming (Pluto TV):
- Market Share: ~3% of U.S. ad-supported streaming.
- Monthly Active Users: 80 million globally.
News Division
CBS News: ~20% of the U.S. broadcast news market.
- Strengths: 60 Minutes, CBS Evening News, and Face the Nation.
Top Competitors
CBS competes with legacy broadcasters, cable networks, and streaming platforms. Below are its top rivals, their market share, and strengths:
1. Comcast (NBCUniversal)
Broadcast TV Market Share: ~28%.
- Strengths: NBC’s Sunday Night Football, The Voice, and Today Show.
Streaming (Peacock)
- Market Share: ~7% of U.S. streaming.
- Subscribers: 28 million (Q3 2023).
- Strengths: Exclusive Premier League soccer and Universal films.
2. Disney (ABC/ESPN)
Broadcast TV Market Share: ~25%.
- Strengths: ABC’s Grey’s Anatomy, Dancing with the Stars, and ESPN’s live sports.
Streaming (Disney+, Hulu, ESPN+)
- Market Share: ~25% of U.S. streaming.
- Subscribers: 220 million globally (Disney+ and Hulu combined, Q3 2023).
- Strengths: Marvel, Star Wars, and Pixar franchises.
3. Warner Bros. Discovery (HBO Max/Discovery+)
Broadcast TV Market Share: ~20%.
- Strengths: CNN, TNT, and TBS cable networks.
Streaming (Max)
- Market Share: ~10% of U.S. streaming.
- Subscribers: 95 million globally (Q3 2023).
- Strengths: HBO originals (Game of Thrones, Succession) and Discovery’s reality shows.
4. Netflix
Streaming Market Share: ~35% of U.S. streaming.
- Subscribers: 247 million globally (Q3 2023).
- Strengths: Dominant original content (Stranger Things, The Crown) and global reach.
5. Amazon Prime Video
Streaming Market Share: ~15% of U.S. streaming.
- Subscribers: 200 million globally (included with Prime membership).
- Strengths: The Lord of the Rings: The Rings of Power and NFL’s Thursday Night Football.
Competitive Strengths of CBS
Live Sports
- NFL rights (AFC games, Super Bowl) and NCAA basketball.
- Drives ad revenue and subscriber growth for Paramount+.
Iconic Franchises
- Star Trek, NCIS, and Yellowstone prequels (1923, 1883).
- Attracts loyal audiences across broadcast and streaming.
News Dominance
- 60 Minutes and CBS Evening News are trusted brands.
- High ratings for election coverage and breaking news.
Free Streaming (Pluto TV)
- Ad-supported model appeals to cost-conscious viewers.
- Complements Paramount+ by offering a lower-tier option.
Challenges and Weaknesses
Streaming Losses
- Paramount+ is not yet profitable, with $1.7B in losses in 2023.
- Lags behind Netflix and Disney+ in global reach.
Debt Burden
- Paramount Global carries $16.8B in debt (Q3 2023).
- Limits investment in content and technology.
Cord-Cutting
- Declining cable subscriptions reduce revenue from CBS-affiliated channels.
Brands Owned by CBS
CBS, as part of Paramount Global, operates under a vast portfolio of brands spanning broadcast, cable, streaming, and film. Below is a detailed look at the major brands owned by CBS and their significance, presented in paragraph form.
1. CBS Television Network
The CBS Television Network is the flagship broadcast network, reaching over 120 million U.S. households. Known for its primetime dominance, CBS airs hit shows like NCIS, Young Sheldon, FBI, and Blue Bloods.
The network’s news division is equally prestigious, with 60 Minutes, CBS Evening News, and Face the Nation consistently ranking as some of the most trusted news programs in the country.
CBS also boasts a strong sports portfolio, including NFL games, NCAA March Madness, and PGA Tour coverage. Its ability to combine entertainment, news, and live sports has made it the #1 broadcast network in primetime viewership for over a decade.
2. Paramount Pictures
Paramount Pictures, one of Hollywood’s oldest film studios, was founded in 1912 and remains a cornerstone of Paramount Global’s content strategy.
The studio is home to iconic franchises like Mission: Impossible, Transformers, and Star Trek, as well as recent blockbusters such as Top Gun: Maverick (2022) and A Quiet Place.
Paramount Pictures also produces critically acclaimed films and collaborates with top talent, ensuring a steady pipeline of content for both theatrical releases and Paramount+.
Its global distribution network and strong brand recognition make it a key asset in Paramount Global’s portfolio.
3. Showtime Networks
Showtime is a premium cable network renowned for its high-quality original programming. With shows like Yellowjackets, Dexter: New Blood, Billions, and The Chi, Showtime has built a reputation for edgy, award-winning content.
The network also produces compelling documentaries, such as Couples Therapy and The Circus.
In recent years, Showtime has been integrated into Paramount+ as a premium tier, allowing subscribers to access its exclusive content alongside Paramount+’s broader library. This integration strengthens Paramount Global’s position in the competitive streaming market.
4. Paramount+ (Streaming Service)
Paramount+ is Paramount Global’s flagship streaming platform, launched in 2021 to compete with giants like Netflix and Disney+.
The service offers a mix of original programming, such as Star Trek: Strange New Worlds, Halo, and 1923 (a Yellowstone prequel), alongside live sports, including NFL games and UEFA Champions League matches.
Paramount+ also provides access to thousands of episodes from CBS, MTV, Nickelodeon, and other Paramount-owned brands. With competitive pricing and both ad-supported and premium tiers, Paramount+ is central to Paramount Global’s streaming strategy, aiming to reach 100 million subscribers by 2024.
5. Pluto TV (Free Ad-Supported Streaming)
Pluto TV is a free, ad-supported streaming service that offers over 1,000 live channels and on-demand content.
It features a mix of curated channels, including CBS News, MTV Classic, and Comedy Central Pluto TV, as well as movies and TV shows. Pluto TV attracts cost-conscious viewers who prefer free streaming options, complementing Paramount+ by serving as a gateway to Paramount Global’s broader content ecosystem.
With 80 million monthly active users globally, Pluto TV is a key player in the growing ad-supported streaming market.
6. Nickelodeon
Nickelodeon is the leading kids’ entertainment brand, known for iconic shows like SpongeBob SquarePants, Paw Patrol, and Teenage Mutant Ninja Turtles.
The brand also produces original films, such as The Loud House Movie and PAW Patrol: The Movie, which appeal to both children and families. Nickelodeon’s content is a major draw for Paramount+, expanding its family-friendly offerings and helping to attract younger audiences.
The brand’s dominance in children’s programming ensures its continued relevance in the evolving media landscape.
7. MTV
MTV is a pop culture and music-focused cable network that has been a cultural touchstone for decades. Known for shows like The Challenge, Jersey Shore: Family Vacation, and Ridiculousness, MTV continues to engage younger audiences.
The network also hosts the annual MTV Video Music Awards (VMAs), one of the most-watched award shows globally. MTV’s integration into Paramount+ allows its content to reach a broader audience, reinforcing Paramount Global’s appeal to younger demographics.
8. Comedy Central
Comedy Central is a cable network specializing in comedy programming, with a lineup that includes The Daily Show, South Park, and Drunk History.
The network has a cult following, particularly for South Park, which remains one of the longest-running and most influential animated series.
Comedy Central also produces stand-up specials featuring top comedians like Kevin Hart. By integrating its content into Paramount+, Comedy Central strengthens Paramount Global’s comedy offerings and attracts fans of edgy, irreverent humor.
9. BET (Black Entertainment Television)
BET is a cable network targeting African American audiences, with a lineup that includes shows like The Oval, Sistas, and the annual BET Awards. The network also produces original films and documentaries, such as American Soul and BET Her Presents.
As a leading brand in Black entertainment, BET plays a crucial role in Paramount Global’s diversity and inclusion efforts.
However, Paramount has explored selling BET to focus on its core streaming strategy, highlighting the brand’s value in the media landscape.
10. The CW (Joint Venture with Warner Bros. Discovery)
The CW is a broadcast network targeting younger audiences, known for shows like Riverdale, The Flash, and All American.
While Paramount Global owns a 50% stake in The CW, the network has struggled financially in recent years. In 2022, Paramount and Warner Bros.
Discovery sold a majority stake to Nexstar Media Group, though both companies continue to produce content for the network.
The CW’s focus on teen dramas and superhero series complements Paramount Global’s broader content strategy, even as it transitions to new ownership.
Conclusion
CBS is owned by Paramount Global, which is controlled by National Amusements Inc. and the Redstone family. Institutional investors such as Vanguard, BlackRock, and State Street also hold significant shares.
CBS remains a dominant player in television broadcasting and digital media, expanding its reach through streaming services like Paramount+. Understanding who owns CBS provides a clearer view of its governance and role in the media industry.
FAQs
Who is the biggest shareholder of CBS?
National Amusements Inc. is the largest shareholder of CBS through its control of Paramount Global.
Does CBS own Paramount?
No, CBS is a part of Paramount Global, which owns both CBS and Paramount Pictures.
Is CBS publicly traded?
CBS itself is not separately traded; it is part of Paramount Global (NASDAQ: PARA).
What networks does CBS own?
CBS owns CBS News, CBS Sports, CBS Studios, and the streaming platforms Paramount+ and Pluto TV.
Who owns National Amusements?
National Amusements is controlled by Shari Redstone, who inherited leadership from her father, Sumner Redstone.
What is CBS’s market value?
CBS’s estimated market value is around $25 billion, based on its role in Paramount Global’s business.