Analysis: Why Does CBS and not Viacom invest in companies like TicketReserve?

Authored by Jay Baage on June 6, 2007 - 8:59pm.

CBS is the latest company to dig for gold in ticket-sales Klondike with a minority investment in TicketRESERVE, a site geared towards sports fans that are willing to pay to guarantee a seat at the big game if their team makes it through the playoffs.

CBS did not disclose the terms of the deal, but it is a minority partnership that comes after eBay purchased StubHub for $310 million in January, and Comcast bought Fandango in April for, according to some estimates, $200 million, according to Red Herring.

The TicketRESERVE deal is one more way for the broadcaster to reach sports fans, but the investment in a proprietary electronic marketplace for hard-to-get tickets still seem a little off for the TV company that split off from Viacom to be more predictable.

I don’t know, but this deal just underscores the weird turn that the strategic split-up of Viacom by Sumner Redstone, into New Viacom and CBS, has taken.

Wasn’t the logic behind the split to unlock value in that CBS was supposed to be the reliable cash cow and New Viacom the company that was supposed to leverage its profile as a growth company in new media to acquire hot new media properties with its growth stock?

Well, CBS’ stock is outperforming Viacom’s and buying into all these new media companies. Where does that leave Viacom? You tell me.

Joakim Baage

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