CBS Board Prepares for Deal Discussions with Viacom

According to sources familiar with the situation, CBS’s board is preparing for deal talks with Viacom. The sources have revealed that the companies’ merger talks are expected to begin mid-June.

The unidentified sources have said that these long-awaited discussions could even begin even sooner and that Viacom CEO Robert Bakish would likely run the combined entity.

CBS and Viacom shares were both up in the 3%-5% range in the first hour of trading on Thursday as Wall Street learned about the news.

The two companies had been brought togetheer in the year 2000 and had split in 2006. The controlling shareholder Shari Redstone has been urging for the consolidation to help both companies better compete against its larger media rivals and tech giants.

CBS’ board of directors had been overhauled with members who are in more support of a Viacom acquisition since the company’s ex CEO Les Moonves had been ousted for sexual misconduct.

CBS is now run by president and acting CEO Joe Ianniello, who was formerly COO under Moonves. The search for a new CEO was called off last month.

Disclaimer: We have no position in any of these companies and have not been compensated for this article.