From Tiffany To Viacom Target
CBS, the granddaddy of broadcast networks, has been working to change its image as a stodgy media company, an effort that made the network a more attractive acquisition target for Viacom Inc.
Its no-nonsense chief executive, Mel Karmazin, who has guided the company's radio business to strong profits, launched new Internet investments and beefed up its outdoor advertising properties, is leading the drive.
CBS executives have tried to subtly introduce young characters and shows with appeal to all ages without alienating the core audience of older people. It worked to the extent that CBS was the No. 1 network in the ratings this past season.
The world's largest pure-play media company is composed of CBS Television, Cable and a majority stake in Infinity Broadcasting Corporation, according to a joint Viacom-CBS statement released when the two companies announced their merger Tuesday.
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CBS had its start in 1927 when Arthur Judson founded the United Independent Broadcasters Radio Company. It was quickly bought by Colmbia Phonograph, and cigar maker Sam Paley took a controlling interest in the company the next year.
Paley installed his son, William, as president, who began transforming the business in a head-to-head rivalry with larger rival National Broadcasting Co.
The younger Paley raided NBC stars, built an aggressive news organization and promoted the company's daytime programming, sealing CBS's reputation as the "Tiffany Network" with classier shows than those seen on rival networks.
By the mid-1930s, CBS had a major radio broadcasting network, and in 1938 the now-legendary Edward R. Murrow began his career at CBS as head of the network's European division.
CBS developed a colorful, sometimes controversial reputation in TV broadcasting. The company's news unit helped expose McCarthyism in the 1950s, even though it required employees to sign a "loyalty oath" stating they didn't sympathize with or belong to communist groups.
The CBS show "64,000 Question" became embroiled in a 1958 scandal showing it was rigged. The company's programming reputation was enhanced by the debut of "60 Minutes" in 1968, "All in the Family" in 1971 and "M.A.S.H." in 1972.
Loew's Corp. chairman Laurence Tisch became CBS chief executive in 1987, but was criticized for selling valuable assets, including its leading record company. CBS also lost broadcasting rights to NFL games and several affiliates to the Fox network.
Westinghouse Electric bought CBS in 1995 and began selling its non-broadcasting holdings. It bought Infinity Broadcasting in 1996, which was headed by Karmazin, and expanded into cable.
Karmazin was named president of CBS in April of 1998, and was named to the additional post of CEO last fall. He has engineered several key mergers, including the purchase of King World Productions, the leading syndicator of television programming with shows like "Wheel of Fortune," and Outdoor Systems, the nation's largest outdoor advertising company.
CBS also has stakes in several Internet companies, including CBS MarketWatch.com, SportsLine USA Inc., StoreRunner Inc., Office.com Inc. and hollywood.com.