Redstone's National Amusements Urges Viacom, CBS to Explore Merger
September 29 2016 - 8:47AM
Dow Jones News
By Joshua Jamerson
National Amusements Inc., Sumner Redstone's family holding
company, on Thursday publicly called for the boards of the
companies it controls -- Viacom Inc. and CBS Corp. -- to explore a
merger.
In a letter to the companies disclosed in a press release,
National Amusements said it believes a merger could "allow the
combined company to respond even more aggressively and effectively
to the challenges of the changing entertainment and media
landscape."
National Amusements said the optimal deal would be an all-stock
transaction. Neither Sumner nor Shari Redstone would vote as
directors on the matter or participate in any of the related
deliberations. David R. Andelman, a director on the CBS board, also
won't participate.
The move confirms reports that Mr. Redstone's daughter, Shari,
is moving to potentially undo the last big strategic move of her
ailing father.
Coming a decade after Mr. Redstone split the two companies from
each other, the proposed reunion would be effectively an admission
that the split -- intended to free Viacom's then fast-growing cable
channels from the drag of CBS's old-school broadcast assets --
didn't pan out as intended.
Ms. Redstone's call on a potential CBS-Viacom marriage comes
weeks after she cemented a powerful role in her family's $40
billion media empire. Mr. Redstone, who is 93 years old and in ill
health, remains on the board of National Amusements, though he
stepped down from his role as chairman of both CBS and Viacom
earlier this year amid questions about his mental capacity.
Shares of Viacom rose 0.9% to $36.90 in premarket trading, while
CBS stock rose 0.4% to $54.39.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
September 29, 2016 08:32 ET (12:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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