Radio and TV companies in US getting smaller

In the US, Viacom has confirmed a plan to break up into two separate companies, one centered on broadcast TV and another one built around cable networks.

The company decided to pursue the breakup after becoming frustrated with its languishing stock price. Viacom’s split is also the biggest example of a recent trend among media companies to trim down their holdings as they try to regain favor on Wall Street.

Investors have become disillusioned with many large media conglomerates in recent years amid growing skepticism about the “synergies” to be gained from owning such diverse groups of assets.

This trend is also evident in the US Radio sector.

Clear Channel Communications announced in April that it would spin off its live entertainment business. Radio station and magazine owner Emmis Communications is also on record saying it intends to sell its TV stations.