Official: Letter From Redstones Asks Viacom, CBS Boards To Consider Merger
September 29, 2016 at 11:01 AM (PT)
As predicted earlier this week (NET NEWS 9/28), SUMNER REDSTONE's NATIONAL AMUSEMENTS has officially asked the boards of VIACOM and CBS CORP. to consider a merger to reunite the companies.
REUTERS reports that a letter from REDSTONE and his daughter, Vice Chair SHARI REDSTONE, read, "We believe that a combination of CBS and VIACOM might offer substantial synergies that would allow the combined company to respond even more aggressively and effectively to the challenges of the changing entertainment and media landscape." The letter suggests that an all-stock deal with shareholders of both companies getting the same class of shares in the combined company would be the best route, and indicated that it would not support a deal that would put control into the hands of a third party.
CBS CORPORATION confirmed receipt of the letter TODAY and said that it "will take appropriate action to evaluate what is in the best interest of CBS CORPORATION and its shareholders." NATIONAL AMUSEMENTS holds 80% of the voting shares of CBS and VIACOM.