Giant media company VIACOM to split into two separate entities

VIACOM Inc.'s board approved the plan of splitting the company into two separate entities, hoping for a rise in the stock price value.

The giant media corporation owner of Channel 3, WYSP - FM, KYW-AM, CBS and MTV will have two separate divisions, one dealing with broadcast televisions and the other one with cable networks, set to function from the beginning of 2006.

Sumner Redstone, 82, who remains chairman will control shareholder of both companies based in New York.

Les Moonves, the current CBS chief and Viacom copresident will lead the new CBS Corp. which will include the CBS and UPN networks, a major radio and outdoor advertising group, and a group of TV stations as well.

Tom Freston, MTV chief and Viacom copresident, will lead the other division retaining the Viacom name which will include MTV, Nickelodeon, Nick at Nite and Comedy Central. The Paramount movie studio will be a part of this second company as well.

The investors interested in fast growing-businesses might be attracted to the MTV-based division, while the dividends seekers might buy CBS Corp. shares, according to Viacom's opinion quoted by Associated Press.