Media mogul Sumner Redstone and his daughter Shari have abandoned their efforts to merge US network CBS and media conglomerate Viacom.
In September, National Amusements, the privately held movie company through which the Redstones control 80 per cent of the voting shares of CBS and Viacom, called on the two entities to consider recombining, 10 years after Viacom was spun off from CBS.
However, the plans never progressed beyond initial talks. The Reuters news agency, citing two sources familiar with the situation, said the two sides never entered discussions on pricing and were far apart on Viacom’s value.
National Amusements said in a letter yesterday (Monday) that it elected to end the push for a merger in expectation of a turnaround at Viacom under new leadership. Viacom later confirmed that it had discontinued the exploration of a “potential combination” with CBS following receipt of National Amusements’ letter and request, and dissolved the Special Committee that was formed to evaluate a potential transaction.
It appointed Bob Bakish as permanent president and chief executive, and as a member of the board, effective immediately. Bakish has served in the role on a temporary basis since November 15.
Shari Redstone, vice-chair of the Viacom board, said: “I am very excited by the strategy Viacom is pursuing under Bob's leadership, as well as the relentless hard work and passion he has demonstrated not only in his fast start at the helm but in his many years at the company. While there is much work to do, I firmly believe that Viacom has a bright future, and that confidence is underpinned by senior management's commitment to innovation and a more coordinated, global approach to managing our brands.”
Monday’s announcement came after Viacom last month agreed a $345m (€312.5m) deal to acquire Argentinian free-to-air broadcaster Telefe from the Telefónica telecommunications company.
The deal, which is subject to regulatory clearance, was sealed by the Viacom International Media Networks division of the conglomerate. Viacom said that by combining Telefe with its pay-television networks the deal will further strengthen VIMN’s position in Argentina and Latin America.
Sports content held by CBS includes rights to American football league the NFL.