CBS Corp. has agreed to Viacom's terms of a $ 11.7 billion merger. Thus, a long cycle of failed negotiations finally ends with spectacular success and another giant corporate merger. In 2006, the two media giants split.
The deal brings together the most-watched TV network in the United States with parent company Paramount Pictures and cable channels such as MTV and Nickelodeon. Shari Redstone, whose family controls both companies, will chair the new entity named ViacomCBS Inc. Viacom CEO Bob Bakish will lead the new business again as CEO.
Joe Ianniello, currently leading CBS, will oversee CBS 'business development.
CBS shareholders will receive 61% of the new company, with the remainder going to Viacom investors. The new company will also pay a dividend. CBS shares rose 1.4% and Viacom Class B shares rose 2.4%.
CBS will receive 13 seats on the board of directors and Viacom will receive 4. The other two will go to National Amusements, which is an investment company of the Redstone family.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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