Viacom has its problems. As reported in the New York Post, among other places, as owner of Viacom, Sumner Redstone encounters more personal problems, the rivalries grow within. This is never good news and in this case a media giant may soon falter and find itself on the sales block.
While it took a bit of genuis by the original executives to take a less significant Viacom and make it what it is today, the company faces an uncertain future. Not only is the sales block a possibility, but so is the possibility of it breaking into smaller pieces. Viacom gained through selective aquistion of other companies. It may find itself breaking up into smaller blocks.
Viacom could start to sell off pieces of itself to satisfy debt. While executives claim they were taken by surprise by the debt load, It is difficult to take at face value that executives had absolutely no idea of the harsh realities of the company’s failure to make payments on its debt. But who know?
The main thing is once the company starts to split on the inside, the serious fighting starts. There are power grabs internally, and then there are battles externally to wrest the more valuable assets away from the company. Fighting is so bitter, usually, it makes the mixed martial arts contests look like a cakewalk.
Senior executives and promising new persons will often get fed up and start looking around for a new place to work. If you are a company aware of this type of struggle within your industry or where people possess the skill sets that you can use, you may consider recruiting some of the talent. Often highly skilled professionals could be had for bargain rates, just so they have a place to go a few weeks after their former company crumples all around them.
As part of your preemployment screening program, discuss with your human resources executives the viability of poaching on the failing giants. It may indeed prove to be a good business practice for your company.
