CBS-Viacom Merger Halted
The Redstone family unexpectedly called off a proposed merger between CBS Corp. and Viacom. The companies were directed by the family three months ago to explore a consolidation of its $40-billion media empire in an effort to boost value.
Shari Redstone and her father, Sumner Redstone, issued a letter to the boards of both companies to halt negotiations. The Redstones, which control 80% of the companies voting shares, believe now is not the right time to join the companies together.
Since merger orders were issued, Viacom has made strides toward improvement under a new strong management team that includes interim CEO Bob Bakish and five new board members. And, CBS is substantially stronger under CEO Leslie Moonves.
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