This article recounts the early days after the decision was announced to break Viacom into two separate companies (one cable, which would be a growth stock, and the other broadcasting, which would be a value stock). Simply put, Sumner Redstone’s acquisition strategy was not nearly as successful as he had expected it to be. Indeed, it has failed. But, that does not mean that the split is welcomed with open arms and rave reviews on the part of Wall Street analysts.
The main logic behind the split up is that sprawling conglomerates become dragged down by their own size and that expected synergies often do not occur because of management struggles or clashes of corporate cultures (see chapter 11, pages 233-235 of Media Economics, Theory and Practice for a great example of this).