CBS-Viacom Merger: VIAB Stock Falls as Deal Nears Finalization
The CBS-Viacom merger is reportedly moving closer to finalization and it’s hitting VIAB and CBS stock on Monday.
The unnamed sources in the report say that CBS-Viacom merger won’t have CBS paying a premium for VIAB stock. One source says that the offer will come in the form of a little over for each share of VIAB stock. Another claims the offer will range from 0.5960 and 0.5965 shares of CBS stock for each share of VIAB stock.
So why exactly is a CBS-Viacom merger in the works? It partially has to do with the shrinking cable industry. That makes it harder on the two companies and they’ll benefit from a merger. They’re smaller size in the industry is also an issue. It doesn’t allow them to compete well separately against larger companies, such as Disney (NYSE:), reports Reuters.
If the current negotiations go well between the two companies, it’s likely that we’ll see a CBS-Viacom merger announcement . That makes sense as sources behind the rumors claim that the two were working to smooth out the details over the weekend.
CBS stock was down 1% and VIAB stock was down 4% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
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