Viacom has countered CBS’ initial acquisition offer, adding about 24 percent in valuation to the opening proposal, two people with knowledge of the negotiations told TheWrap. Viacom also wants Bob Bakish as president and chief operating officer at the new company, according to one of those people.
The counter-offer would value Viacom at $14.7 billion, though since this is an all-stock deal, any ultimate value of a completed transaction would come down to fluctuating share prices.
Initially, CBS had proposed a share exchange ratio of 0.55, which would value Viacom at $11.9 billion. Viacom believes that to be a low-ball offer, CBS does not. At the time the value became public, it did place a dollar amount on Viacom that was below its market cap.
Viacom’s current market capitalization is $12.691, which is somewhere in the middle of the two proposals on the table.
CBS is currently balking at both Viacom’s self-valuation and the idea of Bakish in such a key role. Executives at the so-called Tiffany Network want Leslie Moonves’ team to stay in place, which means Joe Ianniello would remain COO under CBS’ terms.
Both companies believe there is a case to be made for their version of an envisioned hierarchy: Bakish is a popular boss in a media-facing role, but Ianniello has helped guide the financials of the clearly more successful corporation.
Viacom and CBS both declined comment on this story.
CBS and Viacom were one company once before, though they spun off from one-another back in 2005. Since then, CBS has been the more successful of the two publicly traded corporations.
Both companies are controlled by the Redstone Family. The ailing Sumner Redstone’s holding company National Amusements Inc. carries about 80 percent of the voting shares for both CBS and Viacom, and his daughter Shari Redstone is a vice chairman for each. She’s been leading the charge for CBS and Viacom to recombine.
9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)
While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.
Here are some of the biggest deals of the year:
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Disney to acquire most of 21st Century Fox for $52.4 billion
In a massive deal that could change the entertainment industry even more than AT&T-Time Warner, Disney announced plans to acquire Fox's film and TV studios and much of its non-broadcast television business, including regional sports networks and cable networks such as FX, FXX and Nat Geo. Disney would also pick up Fox’s stake in the European pay-TV giant Sky — and be better positioned to win regulatory approval to complete the acquisition of the 61 percent of the company it does not already own.
Discovery Communications agrees to buy Scripps Networks Interactive for $11.9 billion
The merger of two cable powerhouses brings together channels including Discovery, Science, Food Network and HGTV – and could give the combined company a stronger position as pay-TV continues to migrate to the internet.
Discovery/Scripps
Sinclair Broadcast Group agrees to buy Tribune Media for $3.8 billion
This deal, if approved, would give conservative-leaning Sinclair control of 223 stations in 108 markets, including 39 of the top 50, covering 72 percent of households in the country. And it's only possible under rule changes implemented by new FCC Chairman Ajit Pai.
Sinclair/Tribune
Cineworld offers to buy Regal Cinemas for more than $3 billion
After a string of movie theater mergers last year, the sector has quieted down -- along with the box office. And while this isn’t yet a done deal -- or even an accepted offer -- British chain Cineworld made a late November bid of $23 a share for the U.S.’s No. 2 cinema chain.
Cineworld/Regal
Meredith Corp. acquires Time Inc. for $2.8 billion
The magazine megadeal is a sign of changing times in the publishing industry, with the owner of esteemed brands like Time, Fortune and Sports Illustrated selling to the parent of Better Homes and Gardens and Country Life – backed by $650 million from big-time conservative donors the Koch brothers.
Meredith/Time
Verizon acquires Straight Path Communications for $2.3 billion
Straight Path may not be a household name, but it was the subject of a bidding war between AT&T and Verizon. The company is one of the largest owners of millimeter wave spectrum, seen as key to the buildout of 5G networks, which should power much faster mobile internet -- better for video -- in the near future.
Verizon/Straight Path
Disney buys the rest of BAMTech for $1.6 billion
The Mouse House jumped into internet TV in a major way in 2017, announcing upcoming Disney and ESPN-branded streaming services and acquiring the rest of streaming tech company BAMTech to power those products.
Disney/BAMTech
Entercom buys CBS Radio for $1.5 billion
CBS Radio was intended to be spun off from its broadcast parent in an IPO, but instead it was scooped up by a competitor. The combined company, now the second largest radio business in the country, owns and operates 244 stations in 47 markets.
Entercom/CBS Radio
MGM buys the rest of Epix for $1 billion
The independent studio went all in on the pay-TV business, buying the rest of the premium cable network from Viacom and Lionsgate. And that's paid immediate dividends, as MGM's media networks division propelled it to a strong third quarter.
MGM/Epix
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Rewind 2017: Media and content consolidation continued this year
While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.
Getty Images
