Viacom, CBS up amid merger discussions

This post was originally published on this site
viacom cbs

Shares in Viacom and CBS jumped Friday after a report that the sibling media companies might be reunited once again.

Such a move could give a lift to Viacom, which has been struggling to impress investors. But there are no signs of any imminent announcement.

The Wrap reported shortly before the market closed on Friday that “Viacom and CBS vice-chairwoman Shari Redstone is pursuing a merger of the two media companies.” The story cited “multiple insiders.”

Shares in both companies were basically flat until the story came out. Shares in Viacom (VIA) closed at $33.76, up 9.57% for the day. CBS (CBS) closed at $58.83, up 1.85%.

Redstone and senior executives have, indeed, recently discussed recombining the two companies, two sources with knowledge of the talks, who spoke on condition of anonymity because the companies are not commenting on them, told CNN.

Redstone is inclined to make the move. But no concrete steps in that direction have been taken, the sources said.

One of the sources said there are no “active” discussions underway.

Shari and her father Sumner Redstone control National Amusements, a holding company that holds most of the voting stock in both CBS and Viacom.

The two companies split in 2005, six years after they had merged.

There has been repeated talk about a recombination in the years since. But as recently as last year, Shari Redstone said that a merger would have squashed Viacom’s “momentum.”

CBS is widely seen as the stronger of the two companies. But there have been long-standing questions about whether CBS CEO Les Moonves would want to take on Viacom and run the two companies — and on what terms he would do so.

Redstone said at a Recode event last spring, “I have a great relationship with Les, and I think that we would have worked really well together on a combined company.”

TheWrap reported on Friday that Moonves “is now open to the possibility.”

CBS and Viacom representatives declined to comment on Friday. A spokesperson for Redstone did not respond to a request for comment.

Be Sociable, Share!

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.