National Amusements Proposes Combination of CBS & Viacom

NORWOOD: National Amusements has asked the boards of CBS and Viacom to consider a potential combination of the companies.

National Amusements, the owner of a majority of CBS and Viacom’s voting stock, told board members it believes the combination of CBS and Viacom “might offer substantial synergies that would allow the combined company to respond even more aggressively and effectively to the challenges of the changing entertainment and media landscape.”

The letter to board members, signed by CEO Sumner Redstone and President Shari Redstone, requests that the board of each company takes the appropriate steps to consider the proposed transaction. “We believe that any transaction should be the result of full and fair deliberation and negotiation, and that any transaction would proceed only if it is approved by each board.”

Sumner Redstone, Shari Redstone nor David Andelman will vote as directors on the consideration of the proposed merger and none will participate in any of the related deliberations.

“We believe moving forward expeditiously, but with due care, is important and we are prepared to be of assistance to the two companies as they explore this possibility,” the letter concluded.