How to be a Ham

1. Paramount was a takeover target for a variety of reasons. Paramount was one of only two majors” that was not already a part of a larger media empire that had extensive content production and distribution capabilities. Viacom could combine Paramount’s content with its distribution to better compete with the other majors. In addition, based on comparable company multiple analysis and stand-alone discounted cash flow analysis, it appears that Paramount was also relatively inexpensive for its portfolio of assets.

2. Viacom would clearly make a better fit for Paramount because of the complementary lines of business. Viacom had content (such as Beavis and Butthead) that could use the creative talents at Paramount. In addition, Viacom could take advantage of Paramount’s content library and distribute it through its cable and network television outlets. QVC on the other hand, had very little to...