Negotiations are proceeding in the merger talks between CBS and Viacom, but all is not well.
According to Reuters, CBS “intends to make a low-ball all-stock offer for Viacom — valuing the company below its current market cap of about twelve billion.”
Another issue in the discussions is the management. CBS Chairman-CEO Leslie Moonves would be in charge and he would like Joe Ianniello, his current chief operating officer, to be his number two. Viacom would prefer Viacom President-CEO Bob Bakish.
Wall Street observers are not sure if this merger will ever happen. “The negotiations between the Viacom and CBS boards will be difficult,” which “has also raised the prospect of the tables turning with Viacom making an all-stock offer for CBS.”
CBS and Viacom own Star Trek.