US: CBS board plans merger talks with Viacom

The CBS board is preparing for merger talks with Viacom, people familiar with situation said, reported CNBC.

The long-anticipated talks between the two companies controlled by the Redstone family’s National Amusements are expected to begin in mid-June, though discussions could begin even sooner, the sources said. Viacom CEO Robert Bakish would likely run the combined entity.

The CBS board met on Wednesday, May 29, to review strategic options that included an unofficial offer it made to buy Lions Gates Entertainment’s Starz cable network for US$5 billion, one source briefed on the meeting said.

As a condition of the September 2018 settlement that led to CBS dropping a lawsuit against its controlling shareholder, Shari Redstone and her family’s National Amusement, Redstone agreed not to raise the possibility of a merger between CBS and Viacom, which she also controls, for about two years. But it left open the possibility of independent members of the CBS board proposing a combination.

Sources close the companies have said CBS’ independent board of directors is reviewing a variety of options to protect itself against potential shareholder lawsuits that will likely come regardless of the outcome.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.