It looks like CBS-Viacom merger talk is heating up as the two companies prepare for possible negotiations.
According to recent rumors, CBS (NYSE:CBS) and Viacom (NASDAQ:VIA,VIAB) are considering starting up talks again sometime next month. The source of this rumor claims that CBS’ Board of Directors is planning to be the one that starts the negations up again.
The idea of a CBS-Viacom merger isn’t a new one. The two companies have considered such a move in the past, but never gone through with it. However, the danger that dwindling cable subscribers brings may be enough to result in an actual deal between the content companies.
While all we have to run off of is rumors, we already have an idea of who will lead the new company that would result from the CBS-Viacom merger. The anonymous sources claim that Viacom CEO Robert Bakish would likely be the one sitting at the top if a deal reaches completion, reports CNBC.
“This is the first time we’re truly excited by the thought of a CBS-Viacom combo … and view the risk-reward proposition as compelling for both stocks,” Marci Ryvicker, a media analysts for Wolfe Research, said in a note obtained by the Los Angeles Times on Thursday.
CBS stock was up 3%, VIA stock was up 8% and VIAB stock was up 5% as of Thursday afternoon. VIA stock is also up 8% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.