Redstones Withdraw Support For Viacom-CBS Merger

Shari Redstone

Vice Chair SHARI REDSTONE and her father SUMNER REDSTONE's NATIONAL AMUSEMENTS, controlling shareholder of VIACOM and CBS CORPORATION, has withdrawn its support for a VIACOM-CBS merger and is now supporting keeping the companies independent.

A release issued MONDAY (12/12) from NATIONAL AMUSEMENTS confirmed that the REDSTONES were no longer backing the merger, saying that "it has asked the Boards of CBS and VIACOM to discontinue their exploration of a potential combination" and quoting a letter sent to the boards stating that "Over the past few months, after careful assessment and meetings with the leadership of both companies, we have concluded that this is not the right time to merge the companies. Following the management changes that the VIACOM Board put in place, we have been very impressed with the forward‐looking thinking and strategic plan being pursued under BIB BAKISH’s leadership. We know VIACOM has tremendous assets that are currently undervalued, and we are confident that with this new strong management team, the value of these assets can be unleashed. At the same time, CBS continues to perform exceptionally well under LES MOONVES, and we have every reason to believe that momentum will continue on a stand‐alone basis.

"Based on our assessment of the strengths, progress, and future prospects of both companies, we are requesting that the boards discontinue their discussions at this time and focus instead on their independent paths forward."

The two companies were split into two entities in 2005; a recombination has been a prominent part of the drama surrounding the battle between the former VIACOM board and management and the REDSTONEs, including SUMNER REDSTONE's capacity to manage his own affairs.

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