Viacom (VIAB) discusses splitting up its business (quotes from conf call)

Below are some comments from Viacom (ticker: VIAB) from its April 19, 2005 conference call with investors.

We continue to explore the division of our businesses into separately public traded companies…

….we envision two Companies; one [for] growth investors and the second appealing to investors who prefer a higher degree of income and stability…each will have the potential to pursue divergent strategies in capital structures…

…The first company, led by Tom Freston, would comprise our MTVN Cable Networks [and] BET, Paramount Pictures, Paramount Home Entertainment and Famous Music….it will be a content Company focused on brands and specialized demographics… [and]..should command a much higher multiple and provide a favorable currency that can …be used for niche acquisitions. Given the growing importance of the wireless online and videogame business…it will be vital for these businesses to be nimble and innovative…

…a second Company led by Les Moonves, that combines our …Broadcast Networks, our television production business, and TV stations with our fast-growing Outdoor business and high free cash flow operations such as Radio….we're including other operations such as Showtime, Simon & Schuster, Paramount Parks, and our theater operations in this Company. We expect the significant growing free cash flow provided by these assets will enable steady dividend payments and stock repurchases, which should be extremely appealing to yield investors.

(Quotes from the CCBN StreetEvents transcript.)