“Board members of CBS and Viacom worked most of the weekend in an effort to reach a long-awaited merger agreement for the two halves of the Redstone media empire,” Variety’s business editor Cynthia Littleton writes in a story that was posted Sunday night, noting that a deal could be announced today.
The piece also says, “The sale discussions this time are believed to be hovering at a pricetag valuing Viacom in the neighborhood of $13 billion, with the CBS side asserting that the merger premium has been baked into Viacom’s stock price in recent months amid market speculation that the companies would eventually come together.”
To that point Littleton notes that “A previous round of talks in early 2018 settled on an exchange ratio of .61 CBS shares for every share of Viacom stock. Viacom’s market cap as of Friday was $12.3 billion, with shares closing at $30.01, compared to CBS’ closing price of $48.91 with a market cap of $18.3 billion.”
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