Filed by Viacom Inc., pursuant to Rule 425
under the Securities Act of 1933, as amended.

 

Subject Company: Viacom Inc.

Commission File No.: 001-09553

 

On September 13, 2005, Tom Freston, Co-President and Co-Chief Operating Officer of Viacom Inc., used the below slides in connection with his presentation at the Merrill Lynch Media and Entertainment Conference.

 

GRAPHIC

 

 


 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


GRAPHIC

 

 


 

Searchable text section of graphics shown above

 



 

[LOGO]

 

TOM FRESTON

 



 

Cautionary Statement Regarding Forward-Looking Statements:

 

This presentation contains both historical and forward-looking statements. All statements, including business outlook, that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause the actual results, performance or achievements of Viacom to be different from any future results, performance and achievements expressed or implied by these statements. There may be additional risks, uncertainties and factors that Viacom does not currently view as material or that are not necessarily known. The risk factors set forth in Viacom’s previous news releases and filings with the Securities and Exchange Commission could affect future results, causing these results to differ materially from those expressed in Viacom’s forward-looking statements. The forward-looking statements included in this presentation are made only as of the date of the live presentation, and Viacom does not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances. You should not rely on the continued accuracy of any information contained in the presentation after the date of the live presentation.

 

This presentation contains information relating to the proposed separation of Viacom into two publicly traded companies. In connection with the proposed transaction, Viacom intends to file a Registration Statement on Form S-4 with the SEC.  Investors and security holders are urged to read the Registration Statement and related materials that are filed with the SEC when they become available, because they will contain important information about the proposed transaction.  Investors and security holders will be able to obtain copies of these documents, and other documents containing information about Viacom, without charge, at the SEC’s website at www.sec.gov.

 

Any other information relating to the presentation may be found at Viacom’s corporate website on the internet at www.viacom.com.

 



 

[LOGO]

 

TOM FRESTON

 



 

today’s

 

[LOGO]

 

Cable Networks

Entertainment

Television

Radio

Outdoor

Publishing & Parks

 

[LOGO]

 



 

the new

[LOGO]

 

Cable Networks

Entertainment

 

[LOGO]

 



 

An Integrated Approach

 

[GRAPHIC]

 

 

Cable Networks

 

 

Consumer-Focused
Branded Content

 

 

 

 

[GRAPHIC]

[GRAPHIC]

 

 

Digital / Interactive

Filmed
Entertainment

 



 

Investment Thesis

 

[LOGO]

 

 

Creator of premiere global entertainment brands and content

 

 

 

 

Clear leadership in cable networks worldwide

 

 

 

 

Studio provides revitalization and worldwide expansion opportunity

 

 

 

 

Positioned to capitalize on digital platforms and leverage infrastructure to create new brands

 

 

 

 

Strong EPS and free cash flow generation

 



 

Key Operating Philosophies

 

[GRAPHIC]

 

Culture of creativity and innovation

 

 

Obsessive consumer focus – strong connection with specialized audiences

 

 

Methodically evolve brands built on compelling content

 

 

Extend demographic positions into new markets and platforms

 

 

Leverage global position

 

 

Best in class operations / financial discipline

 



 

The Leading Worldwide Cable Network Group

 

MTVN & BET

 

[GRAPHIC]

 

Strong creative heritage

 

Leadership in key operating metrics

 

 

111 channels

 

 

430mm households

 

 

 

17 languages

 

 

95 websites/broadband networks

 

18,000 programming hours in library

 

Strong financial track record

 



 

The Leading Worldwide Cable Network Group

 

Global Reach

 

 

[GRAPHIC]

 

USA - 26 Channels

 

MTV

MTV

MTV2

MTV Desi

MTV Espanol

MTV Hits

MTV Jams

MTV Puerto Rico

mtvU

 

VH1

VH1

VH1 Classic

VH1 Country

VH1 Megahits

VH1 Soul

VH1 Uno

 

NICKELODEON

Nickelodeon

Nick at Nite

Nick GAS

Nicktoons TV

Noggin

 

CMT

COMEDY CENTRAL

LOGO

SPIKE TV

TV LAND

 

BET

BET

BET GOSPEL

BET HIP-HOP

BET JAZZ

 

CANADA

 

TV LAND

 

EUROPE / MIDDLE EAST / AFRICA  - 57 Channels

 

MTV

base (Africa)

Denmark

España

European

France

Germany (MTV2 Pop)

Italia (MTV Brand

New, MTV Hits)

Netherlands

Nordic

Polska (MTV Classic)

Portugal

Romania

Russia

UK / Ireland (MTV base, MTV Dance, MTV Hits, MTV2)

 

VH1

UK (VH2, VH1 Classic)

European

 

NICKELODEON

Cyprus

Espana

European

Israel

Italia

Netherlands (Nick Jr.)

Nordic

Portugal

UK (Nick Jr, Nick Replay, Nick Toons TV)

 

TMF

Flanders

Netherlands (TMF Pure, NL, Party)

UK

 

PARAMOUNT COMEDY

Italia

Spain

UK (1, 2)

 

VIVA

Germany (Viva+)

Hungary

Polska

Switzerland

 

GAME ONE

France

Israel

 

THE BOX

Netherlands

 

ASIA / PACIFIC - 20 Channels

 

MTV

Australia

China

India

Indonesia

Japan

Korea

Mandarin

Philippines

Southeast Asia

Thailand

 

VH1

Australia

India

Indonesia

Thailand

 

NICKELODEON

Asia

Australia

(Nick Jr Australia)

India

Japan

Philippines

 

LATIN AMERICA - 7 Channels

 

MTV

Brasil

MTV (North)

MTV (South)

 

VH1

Latin America

 

NICKELODEON

Brasil

Nickelodeon (North)

Nickelodeon (South)

 



 

The Leading Worldwide Cable Network Group

 

Key Growth Drivers

 

[GRAPHIC]

 

 

Advertising Growth

 

Programming Success

Cable Networks

Multiplatform Extensions

 

Secure Distribution

 

International Expansion

 

New Brands & Franchises

 



 

The Leading Worldwide Cable Network Group

 

Advertising Continuing to Migrate to Cable

 

[GRAPHIC]

 

Beneficiary of more targeted advertising environment

 

Opportunity to exploit value gap versus broadcast

 

Improvements in enabling infrastructure facilitate ad buys

 

Significant opportunity for many of our networks

 

Continued ratings success

 



 

The Leading Worldwide Cable Network Group

 

Proven Programming Formula Drives Ratings Success

 

KIDS

 

TEENS & YOUNG ADULTS

 

ADULTS

 

 

 

 

 

[CHART]

 

[CHART]

 

[CHART]

 

Source: Nielsen, Season to date

 



 

The Leading Worldwide Cable Network Group

 

Multiplatform Model: MTV Example

 

 

 

Television Channels [LOGO]

 

 

 

 

 

 

 

VOD [LOGO]

 

 

 

Internet/Broadband [LOGO]

 

 

[LOGO]

 

 

Wireless [LOGO]

 

 

 

Consumer Products, Games, DVD’s [LOGO]

 

 

 

 

 

 

 

Films [LOGO]

 

 

 



 

The Leading Worldwide Cable Network Group

 

Secure Distribution and Growth

 

[GRAPHIC]

 

Affiliate Agreements           [LOGO]

 



 

The Leading Worldwide Cable Network Group

 

Expanding Global Footprint

 

CHANNELS

 

TERRITORIES

 

LANGUAGES

 

HOMES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[CHART]

 

[CHART]

 

[CHART]

 

[CHART]

 



 

The Leading Worldwide Cable Network Group

 

UK: A Case Study in Scale

 

BRANDS

 

CHANNELS

 

PLATFORMS

 

AD SHARE

 

REVENUE

 

 

 

 

 

 

 

 

 

[CHART]

 

[CHART]

 

[CHART]

 

[CHART]

 

[CHART]

 



 

The Leading Worldwide Cable Network Group

 

Creating New Brands & Franchises

 

[LOGO]

 

Gay and lesbian network

 

 

 

 

[LOGO]

 

Caribbean music and lifestyle network

 

 

 

 

[LOGO]

 

Four U.S. customized ethnic networks

 

 

 

 

[LOGO]

 

Wireless platform in Japan

 

Additional brands in development

 



 

Strong and Rapidly Growing Digital Presence

 

Digital / Interactive

 

MTV

mtv.com

mtv.co.uk

mtv.it

mtv.de

mtv.ru

mtv.nl

mtv.fr

mtv2.co.uk

mtv.es

mtv.pl

mtve.com

mtv.ro

mtv2.com

mtv2europe.com

mtv.com.br

mtvla.com

mtvjapan.com

mtvasia.com

mtv.co.kr

mtv-china.com

mtvindia.com

mtvthailand.com

mtvchinese.com

mtv.com.au

mtvcanada.com

european.mtve.com

broadbandmtv.com

mtv2pop.de

mtveurope.com

mtvringtones.com

mtvnews.com

mobilemtv.com

 

VH1

vh1.com

vh1.co.uk

vh1e.com

vh1savethemusic.com

vh1musicstudio.com

vh1classic.com

vh1megahits.com

vh1soul.com

vh1country.com

vhuno.com

vh1.com.au

vh1la.com

 

NICKELODEON

nick.com

nickjr.com

nick-at-nite.com

nickelodeon.com.au

nickjr.com.au

nick.co.uk

nickjr.co.uk

teachers.nick.com

gas.nick.com

mundonick.com

noggin.com

nickelodeon.nl

nickelodeon.be

nickelodeon.se

nickelodeon.dk

nickelodeon-es.com

the-n.com

 

MTVU

mtvu.com

 

TMF

tmf.be

tmf.nl

 

PARAMOUNT

paramount.com

paramountclassics.com

 

OTHER

bet.com

cmt.com

cmtcanada.com

spiketv.com

staying-alive.org

tvland.com

tvlandcanada.com

comedycentral.com

gameone.net

neopets.com

 

WIRELESS

China Mobile

Do Co Mo

Flux

J-Phone

Motorola

Optus

Singtel

T-Mobile

Verizon

Virgin Mobile

Vodaphone

3 G

 



 

Strong and Rapidly Growing Digital Presence

 

Key Growth Drivers

 

[GRAPHIC]

 

 

Consumer
Trends

 

Leverage consumer usage and advertiser acceptance

 

 

 

 

Digital/Interactive

Migrate
Brands

 

Extend existing brands to reinforce position and broaden participation

 

 

 

 

 

Expand
Brand
Portfolio

 

Develop/acquire brands to exploit new behaviors/build demographic positions

 

We will continue to build / buy / partner

 



 

Strong and Rapidly Growing Digital Presence

 

Neopets: Extending Kids Leadership Position Online

 

[GRAPHIC]

 

                  Cements leadership position with kids/youth demo

 

                  Creates kids on-line ad market leader

 

                  Opportunity to transform existing consumer licensing business

 

                  Meets all financial hurdles

 



 

Rebirth of Paramount Pictures

 

[GRAPHIC]

 

                  Iconic studio with rich history

 

                  Deep library

 

                  Strongest summer in history

 

                  New leadership:

Brad Grey, Gail Berman,

Rob Moore, Tom Lesinski

 



 

Rebirth of Paramount Pictures

 

Key Growth Drivers

 

[GRAPHIC]

 

 

New
Motion Picture
Model

 

 

 

 

Entertainment

 

International
Expansion

 

 

 

 

 

Exploit Home
Entertainment

 

 



 

Rebirth of Paramount Pictures

 

Cable Networks + Film = A Powerful New Combination

 

[GRAPHIC]

 

[LOGO]

 

                  DEMOGRAPHIC ALIGNMENT

                  MTVN / BET lead in 2-34’s

                  Core audience that opens and drives movies

 

                  CREATIVE / MARKETING

                  Tap into “built-in” audience and global marketing advantage

                  Great talent connections

                  Benefit from consumer insights

 

                  HOME ENTERTAINMENT

                  Market share expansion

                  Increased TV product on DVD

                  Unique made for DVD Product

 



 

Rebirth of Paramount Pictures

 

New Motion Picture Model

 

[GRAPHIC]

 

      A Balanced Portfolio of Films, Which Includes Comedies, Prestige Films and Tent-Pole Movies to Anchor Our Slate

 

      Paramount Is Becoming A Home To The Best Talent In The Business

 

      Grow The Nick Movies And MTV Films Brands

 



 

Rebirth of Paramount Pictures

 

New Global Vision

 

[GRAPHIC]

 

      Retain more film rights

 

      Build wholly owned theatrical and television distribution capabilities

 

      Cultivate local language productions

 

      Add additional international distribution depth in Eastern Europe and Asia

 



 

Rebirth of Paramount Pictures

 

Fully Realize Home Entertainment Potential

 

[GRAPHIC]

 

      Exploit industry growth – mine film and TV library

 

      Pursue smart acquisitions of content

 

      Grow share of made-for-video segment

 

      Expand distribution beyond existing retail channels

 



 

Rebirth of Paramount Pictures

 

Worldwide Home Entertainment Consumer Spending

 

[CHART]

 

INDUSTRY

 

PARAMOUNT

 

Source: Nielsen

 



 

Rebirth of Paramount Pictures

 

Growing Market Share

 

[CHART]

 

[CHART]

 

 

 

CATALOG on DVD

 

TV on DVD

 

 

Source: Nielsen

 



 

The New Viacom:

 

Value Creation

 

[LOGO]

 

      Focus on sustainable revenue, EPS and FCF growth

 

      Invest in driving growth in core businesses

 

      Pursue fiscally responsible, targeted acquisitions

 

      Enhance free cash flow generation

 

      Appropriately lever capital structure

 

      Initiate substantial share repurchase program

 

      Improve marginal ROIC

 



 

The New Viacom:

 

A Company to Own

 

[GRAPHIC]

 

      Best-in-class brands and multiplatform content

 

      Proven track record of creative innovation and growth

 

      Significant opportunity to invest in and expand franchises worldwide

 

      Great management team focused on creating shareholder value

 



 

the new

 

[LOGO]