On Thursday, the New York Post reported that shareholders of Viacom Inc. (NASDAQ:VIA) believe that a re-merger agreement between the media giant and CBS Corp. (NYSE:CBS) will come to fruition by Thanksgiving, just a mere five weeks away.
The controlling shareholder of both CBS and Viacom, National Amusements Inc., reportedly said back on September 29 that the merger deal will be an at-market price, all-stock transaction. But according to the Post, some Viacom shareholders are waiting for something better than this fairly typical merger; there’s a “continuing possibility that China’s Wanda Group might still be waiting in the wings with a big check for Paramount, or at least give the studio some financing on the upcoming slate.”
The Post adds that LionTree, one of three banks hired to advise Viacom on the deal, is reportedly helping the company trim its total debt through potentially selling its stake in Epix, a premium content provider.
In addition to pending merger rumors, Viacom is on the hunt for a new chief executive, as acting CEO Tom Dooley is set to leave the company in November. A leading candidate is Bob Bakish, the president of Viacom International.
Viacom and CBS have a long history together. Viacom, originally known as CBS Films Inc., was created back in 1971 as the television syndication segment of CBS, and promptly was spun off. Fast forward to 1999, and Viacom acquired its former parent; the merger was approved in 2000. But just five years later, Viacom and CBS split into two separately traded companies, effectively reversing the 1999 merger.
Both companies will be reporting their most recent financial results soon. CBS reports its fiscal 2016 third-quarter results Nov. 3 after the bell, while Viacom will post its fiscal 2016 fourth-quarter reuslts on Nov. 9 before the bell.
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