Never mind: Proposed CBS-Viacom merger is dead

A few months ago, the Redstone family appeared to believe the only thing that could save Viacom was merging it with CBS, re-fusing the two companies after a decade apart.

But apparently something during that span has convinced the Redstones, whose holding company of National Amusements owns majority stakes in both companies, that Viacom will be okay on its own.

The National Amusements board sent a letter to CBS and Viacom Monday saying it has changed its mind and does not want the companies to pursue a merger.

“We believed that given the industry landscape, a merger might redound to the benefit of both companies and their shareholders,” says the letter.

However, NA’s thinking apparently changed after the ouster of longtime Viacom CEO Philippe Dauman and the installation of Bob Bakish as his interim replacement. On Monday afternoon, Bakish was elevated to permanent replacement.

“Following the management changes that the Viacom Board put in place, we have been very impressed with the forward-looking thinking and strategic plan being pursued under Bob Bakish’s leadership. We know Viacom has tremendous assets that are currently undervalued, and we are confident that with this new strong management team, the value of these assets can be unleashed,” says the letter.

Better days ahead for Viacom?

Ratings and advertising for Viacom have fallen sharply over recent years. Bakish has said he intends to increase synergy between the networks in the hopes of a rebound.

CBS, meanwhile, is already strong and steady, and has a well-regarded leader in Les Moonves, who would have taken over a merged CBS-Viacom. Moonves sounded lukewarm on the prospect of a merger, saying CBS was doing just fine in a tough environment for TV generally.

Tags: bob bakish, cable, cable shorts, cbs, les moonves, merger, redstones, viacom