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We have the size of Disney and Netflix



Bob Bakish, the head of a recently combined CBS and Viacom, said that the company has the scale to take on media rivals.

In an interview with CNBC's Andrew Ross Sorkin, Bakish cited ViacomCBS's content library, which includes 140,000 TV episodes, 36,000 films and 750 series, as enough ammunition to fight the likes of Netflix, Disney, Comcast and others who enter the TV streaming war.

The comments come after CBS and Viacom announced on Tuesday an agreement to merge, reunite the two companies after 13 years intervals and several attempts at an agreement since 201

6. The new company will be called ViacomCBS and Bakish will lead the combined unit .

"It really has almost unmatched scale on the content page," Bakish said. "We clearly have scale in the content. There is no doubt that the companies are clearly stronger together than they are independent."

Viacom and CBS, valued at $ 11.8 billion and $ 18.2 billion respectively, are still owned by Disney, which is worth $ 246.8 billion, and Netflix, which has a market value of $ 136.7 billion.

With the announced merger, investors' attention has turned to whether ViacomCBS will implement additional offers in an attempt to further increase its competitive advantage. Bakish said that M&A could serve as a "vehicle" to increase its scale and allowed the company to look at its options going forward.

"It's early days, we're just getting started," Bakish said.

"[CBS and Viacom] came apart at another time in the media, with different circumstances surrounding it," Bakish said. "Putting them together today is the right move."

The acquisition, which is expected to close by the end of the year, creates a combined company with more than $ 28 billion in revenue.

CBS stands to win the film studio Paramount Pictures, cable networks including Comedy Central, MTV, Nickelodeon and BET and the streaming service Pluto TV and South Park Studios as a result of a merger with Viacom. CBS owns the older broadcast network, in addition to other cable and media properties.

When the merger is complete, the combined companies may appear to acquire another company, such as Discovery, Starz or Sony. Lions Gate, the parent company of Starz, has previously had talks with CBS about relieving the premium entertainment network.

Disclosure: Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com.


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