Viacom is betting the two companies will be more valuable apart than together with the MTV, Nickelodeon and VH1 cable networks and Paramount Studios, which will retain the Viacom name, aimed at growth investors.

The other company will hold the more mature but cash generating businesses of CBS and UPN television networks, a handful of television stations and Infinity Broadcasting, dubbed CBS Corp., appealing to value investors.

"Sometimes divorce is better than marriage," Viacom Chairman and Chief Executive Officer Sumner Redstone told Reuters. "In this case, one and one will make three."

In the last several years, Viacom shares have been held back by the weaker television and radio business, despite having some of the faster growing cable networks in its stable.

The move is part of a series of moves Viacom has made to kickstart its shares and focus on the cable networks, film business, television and radio.

Just yesterday, the company said it would sell its Famous Players theater chain for nearly $400 million to Cineplex Galaxy LP and has said it may put its theme parks on the block.

Redstone said he is also considering putting its Simon & Schuster book publishing unit on the block as well as some small to medium size radio stations.

"We've had a lot of unsolicited interest in the theme parks, which is not growing at a pace we would like for the new companies," Redstone said. "Neither is Simon & Schuster, which I would be sad to lose, but it doesn't grow the way I want these companies to grow. So at the right price we would consider looking at (selling) Simon & Schuster."

Last year, the company pledged to buy back $8 billion in shares.

"For as long as I can remember, MTV Networks has sustained cash flow and revenue growth in the mid-teens percentage range, but that growth has been hidden by the television and radio business," said Stanford Group analyst Frederick Moran. "By splitting the company, they are streamlining their assets so they can get a more complete valuation."

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