Viacom asks CBS to lift the bid by $2.8 billion: sources

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(Reuters) – Viacom Inc (VIAB.O) has asked CBS Corp (CBS.N) to pacify a partnership bid by about $2.8 billion or roughly a entertain some-more than CBS’s offer, people informed with a matter said, indicating a far-reaching opening in a U.S. media firms’ cost expectations.

The Viacom trademark is displayed on a doors of a building in midtown Manhattan in New York, U.S., Feb 27, 2018. REUTERS/Lucas Jackson

National Amusements Inc, a Redstone family association that controls CBS and Viacom, has pushed them to negotiate a partnership by combining eccentric house committees. Viacom’s ask shows how a companies have nonetheless to make swell in their talks.

In a minute to CBS final week, Viacom asked for 0.68 CBS shares for any Viacom category B share, a sources said. CBS had offering 0.55 of a shares for any Viacom category B share, sources have said.

CBS is now deliberation a subsequent stairs in a understanding negotiations, pronounced a sources, who asked not to be identified given Viacom’s ask is confidential.

CBS and Viacom declined to comment.

At CBS’s due share sell ratio of 0.55, Viacom would be valued during $11.9 billion, next a stream marketplace capitalization of $12.7 billion. Viacom’s counterproposal values a association during $14.7 billion.

Viacom shares have risen about a third given early Nov on conjecture of new efforts to mix CBS with Viacom, after a prior turn of negotiations in 2016 finished unsuccessfully.

In a minute to CBS final week, Viacom also asked for a CEO Robert Bakish to be boss and arch handling officer of a total company, a direct upheld by National Amusements, according to a sources.

CBS has asked for a arch handling officer, Joseph Ianniello, to have that purpose instead, a sources said.

Both CBS and Viacom determine that CBS CEO Les Moonves should lead a total company, according to a sources.

The partnership would mix CBS’ radio network, internal TV stations and Showtime wire network with Viacom’s wire networks, including MTV, Comedy Central and Nickelodeon, as good as Viacom’s Paramount Pictures film studio.

The vigour on a media zone to connect has increasing following ATT Inc’s (T.N) designed $85.4 billion merger of Time Warner Inc (TWX.N) and Walt Disney Co’s (DIS.N) new understanding to buy some Twenty-First Century Fox Inc’s (FOXA.O) resources for $52.4 billion.

Combined, CBS and Viacom would have some-more precedence to negotiate prices for their programming with U.S. wire and satellite companies, that face a decrease in their subscriber bottom amid extreme foe opposite media streaming companies, such as Netflix Inc (NFLX.O).

Reporting by Greg Roumeliotis and Jessica Toonkel in New York; Editing by Himani Sarkar

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