Viacom rejects CBS’s offer

Viacom has rejected CBS’s first acquisition offer, which is below the market value, CNBC reported, citing sources familiar with the situation. According to the report, Viacom will propose a counteroffer to CBS bid.
According to the sources, the CBS offer – delivered verbally on Friday- is 0.55 shares for each Viacom class B share, valuing the media company below its USD 12.5 billion market valuation. Viacom expects an offer of more than 0.62 CBS shares.
According to CNBC, both sides seem to agree that CBS CEO Les Moonves should run the combined company. However, Moonves wants to choose Joe Ianniello, the head of operations for CBS, as his number two, while Shari Redstone, a controlling shareholder of CBS, favors Viacom CEO Bob Bakish.