Sumner Redstone’s National Amusements, which controls both Viacom and CBS Corp., has formally asked the boards of both companies to consider an all-stock merger proposal, Variety reports.
National Amusements made the request in a letter sent this morning to board members of the two companies.
“The move had been expected after months of maneuvering at Viacom and signals in recent weeks that Redstone and his daughter, Viacom and CBS vice chairman Shari Redstone, were eyeing a recombination of the companies that merged in 2000 but were split up in 2006,” Variety reports. “The letter makes it clear that National Amusements is not open to considering merger offers with outside companies for either Viacom [or] CBS Corp., a statement that essentially shuts down alternative M&A growth scenarios for both companies.”
The move effectively quashes, at least for the time being, the possibility of a merger of CBS Corp. and Time Warner, which had been the subject of increasing chatter, the report notes.