CBS sues key investor over Viacom merger

Leslie Moonves wants to pick his own team to lead CBS-Viacom. But Redstone wants Viacom CEO Bob Bakish to be a part of it setting up Bakish as a future CEO

It's shaping up to be a headline-grabbing week for CBS Corp.

Verizon had expressed interest in acquiring CBS before merger talks heated up with its corporate sibling Viacom, sources say.

U.S. media giant CBS filed suit on Monday, alleging that majority shareholder Shari Redstone is seeking to "force" a merger with rival Viacom on unfavorable terms. On Friday, CBS will hold its annual shareholders meeting.

"We do believe that in a consolidating media industry the unique assets at both CBS and Viacom could drive meaningful premiums to their current trading values, especially if, as we expect, Time Warner/AT&T are successful in defeating the DOJ's antitrust lawsuit to stop the merger", Crockett wrote.

This surprising turn of events comes after CBS, Viacom and National Amusements spent months discussing a potential remerger of CBS and Viacom, approximately 12 years after the companies first split.

CBS has requested a temporary restraining order to prevent Redstone from interfering with a special meeting of the company's board directors on Thursday, at which CBS plans to propose a Class A common stock dividend that would dilute Redstone's National Amusements' voting interest from approximately 79 to 17 percent.

Title Match Confirmed For WWE Raw This Week
Finn Balor & Braun Strowman by Dolph Ziggler pinning Finn Balor after knocking Finn Balor off of the top rope. Y'know, Jinder Mahal who cost Reigns his latest chance at fighting for the gold last week.

"The Special Committee has taken this step because it believes it is in the best interests of all CBS stockholders, is necessary to protect stockholders' interests and would unlock significant stockholder value", CBS said.

The lawsuit said Shari Redstone could force a merger by replacing CBS board members.

In a statement, NAI said it had no intention of forcing a deal that did not have the support of both companies.

If the dividend is approved, National Amusements' voting rights in CBS would shrink to about 17 percent from about 80 percent, more in line with National Amusements' economic stake in CBS of 10.3 percent, according to CBS's lawsuit, filed with the Court of Chancery in Delaware. Shari Redstone has indicated before that she wants Viacom CEO Bob Bakish to become the combined company's second-in-command.

With Monday's Closing Bell on Wall Street, CBS shares were up $1.14 to $53.66 - their highest close since April 4.

News of the lawsuit sent CBS shares up almost 3 percent and Viacom shares down more than 6 percent.

Related News:



Most liked

John Oliver mocks AT&T for paying Michael Cohen to 'understand' Trump's thinking
So, you wanna know how the Trump administration works? "Congratulations, you just got a f*****g masterclass". An AT&T spokesman said, "We are aware of the letter and will respond".

The Pope's Lamborghini ended up selling for $1.2 million
The 198mph two-seater Hurrican, which would typically be worth around £155,000, was donated to the Pope in November past year . Buy or sell your exotic auto at duPontREGISTRY.com and check back with Autofluence.com for more supercar news .

North Korea to Become Nuclear Weapons State: Former Diplomat
If the idea is translated into action, North Korea could enjoy economic prosperity that will rival that of South Korea. A move like denuclearisation would conflict the integral power structure of North Korea, Thae added.

Tropical Downpours: spotty but heavy storms begin Tuesday
A few strong to severe thunderstorms are possible along a almost stationary surface boundary in northern and central Indiana. After a quiet evening, Wednesday will warm from early morning temperatures from 45 to 55 to mainly the upper 70s and 80s.

NASA to Send Autonomous Helicopter to Mars
NASA hopes that the helicopter will fly around 10 feet high and then stay hovering stable for 30 seconds for its firs test flight. NASA's Launch Services Program, based at the agency's Kennedy Space Center in Florida, is responsible for launch management.

Dozens DEAD as troubles flare on Gaza border
The Turkish government has recalled its ambassadors to the USA and Israel for "consultations", officials told Fox News Monday. The United Nations General Assembly rejected by a huge majority the U.S. recognition of Jerusalem as Israel's capital.

Children said they had punctures, burns
Jonathan Allen and Ina Rogers in booking mugshots released May 14, 2018 , by the Solano County Sheriff's Office. Peggy Allen, Jonathan's mother, claimed that she told Ina a couple of times that she needs to clean her house.

Amazon, Seattle Employers Face New Tax to Curb Homelessness
Housing: $22.4 million (32 percent); Housing services, rental assistance helping people into housing, and case management. Almost 600 large employers making at least $20 million in gross revenues would pay about $500 a year per worker.

Governor Rauner proposes death penalty reinstatement
Death penalty murder suspects would have to be convicted by juries "beyond all doubt" - not just 'beyond a reasonable doubt'. Sue Scherer of Decatur said she had to review the details of the governor's action before taking a position.

Retail inflation rises for the first time in four months
Other notable sub-categories such as cereals became dearer by 2.56 per cent and meat and fish recorded a rise of 3.59 per cent. Inflation in the energy category rose at a four-month high - by 7.85 per cent, from 4.70 per cent in the previous month.

New Lava Fissure Opens in Hawaii's Puna, as More Eruptions Warned
Two new fissures opened on Saturday, bringing the total number of lava outbreaks in and around Leilani Estates to 17. Barrios took shelter on the deck of a neighbor's house as he filmed the fissure spew lava into the air.

Caitlyn Jenner just slammed Kourtney and Khloé Kardashian on Instagram
Stories about Jenner's ex-boyfriend Tyga then surfaced saying he, too, believed that Scott was not the baby's biological father. In one photo, Kylie beamed at the camera as she cuddled her newborn daughter as she posed in Stormi's nursery.

Trump pledges 'total victory' in war on drug prices
Medicare is the national health insurance plan run by the federal government for Americans over the age of 65. Trade Representative to make the issue a top priority with trading partners.

Garver's RBI double in 12th helps Twins beat Angels 5-3
Cozart had a pair of singles before stepping to the dish with a runner on second and one out in the bottom of the ninth inning. Cozart went to third on a wild pitch, and after a walk to Mike Trout , scored when Justin Upton grounded into a force play.

Nanny gets life in prison without parole for killing 2 children
In 2012, in the aftermath of the killings , the Krims founded the Lulu & Leo Fund, which supports creativity in schools. In sentencing Yoselyn Ortega , fifty six, the judge described her " pure evil " ahead of devoting her utmost term.