Viacom is sliding after a report that merger talks with CBS could get 'serious' next week (VIAB)

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  • Shares of Viacom slipped as much as 2% on Friday
    morning after a report said merger talks with CBS could advance
    next week. 
  • The CBS board is reportedly worried about Viacom’s
    management team leading the combined company. 
  • The two companies first starting discussing a merger in
    mid-April. 
  • Watch
    Viacom trade live
    .

Merger talks between CBS and
Viacom
could progress next week, according to a
report from CNBC
.

Viacom Class B shares slipped as much as 2% in early-morning
trading amid the news. CBS shares fell about 1%. 

CBS’s board is scheduled to meet on Friday and is expected to
discuss advancing the merger talks next week, according to the
report.

One possible sticking point could be concerns the CBS board has
about Bob Bakish — Viacom’s chief executive officer — and other
Viacom executives running the newly combined entity, the report
said. 

Viacom stock has historically underperformed its peers such
Disney
and CBS, and some CBS board members expressed concern over possibly
paying a premium for an underperforming company, according to the
report.

The two media companies have been going back and forth for
months over the possible consolidation.  Shari Redstone, the
president of National Amusements, which is a majority shareholder
in both Viacom and CBS, has been pushing for the deal for years but
has been constantly blocked by CBS’s board. 

Viacom shares are up roughly 15% this year. 

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Viacom is sliding after a report that merger talks with CBS could get 'serious' next week (VIAB)