Viacom, CBS form committees to consider merger

Viacom and CBS Corporation, both controlled by Sumner Redstone, said last week that their boards of directors have established special committees of independent directors to evaluate a potential combination.
The companies split in 2005 and now are exploring the idea of merging again, after 13 years. “There can be no assurance that this process will result in a transaction or on what terms any transaction may occur. Neither Viacom nor the Committee intends to comment further until the process is completed”, said the media company in its statement.
Viacom has a strong presence in Latin America through brands such as Nickelodeon, Comedy Central and MTV, and is the owner of Argentina’s TV broadcaster Telefe, which it acquired at the end of 2016. That same year, CBS and Viacom explored a combination, but later abandoned the plan.
However, the industry scenario has changed and the companies could now be strengthened through a combination, in a market with increasing competition from OTT platforms, while awaiting the outcome of the Disney-Fox merger.