Redstone Firm Withdraws Support For CBS-Viacom Merger

(RTTNews) - National Amusements Inc., the owner of a majority of CBS Corp. (CBS-A, CBS) and ViacomInc.'s (VIAB, VIA) voting stock, said Monday that it has asked the Boards of CBS and Viacom to discontinue their exploration of a potential combination.

Sumner Redstone and his daughter Shari Redstone's National Amusement said that after reviewing a tie-up "we have concluded that this is not the right time to merge the companies."

VIA is currently trading at $39.65, down $2.80 or 6.60 percent. CBS-A is trading at $61.62, down $1.60 or 2.53 percent.

In late September, National Amusements said it believed a merger could "allow the combined company to respond even more aggressively and effectively to the challenges of the changing entertainment and media landscape."

In the statement Monday, National Amusements called for a focus on the companies' "independent paths forward."

The Redstone firm said it is encouraged that the companies can thrive separately, citing new Viacom Acting Chief Executive Bob Bakish's "forward-looking thinking and strategic plan" and confidence that Les Moonves, chief of CBS, could continue to deliver strong results there.