Shari Redstone, whose family controls both Viacom Inc. and CBS Corp., supposedly remains interested in the merging of the two companies.
Viacom Inc. is a large media conglomerate operating several keys brands in the entertainment space. The most notable of these brands include Nickelodeon and MTV. CBS Corporation is another media conglomerate operating the well-known CBS channels, as well the CW, Ten Network Holdings Australia, and the publishing house Simon and Schuster.
The merger talk has been generated due to the recent multibillion dollar deals made by other media conglomerates such as Time Warner and Walt Disney Company, which are rapidly increasing in size.
The benefits of such a merger are would be the increased size and market share of the combined company. The market has recognised these benefits with Viacom shares rising 9.6 percent and CBS shares rising 1.8 percent. However, a merger deal failed in December of 2016 when CBS executives convinces Redstone to allow them to carry on operating alone.
It is important to note that the news of the merger has come from an anonymous source, and that officially, no merger talks have been undertaken. Both CBS and Viacom have refused to make comment.
Sources: Bloomberg, CNBC, Viacom, CBS.