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ViacomCBS

To say it will give it scale to compete against Disney or NBC Universal isn't really accurate. The combined ViacomCBS is about a quarter of Disney's market value.
 
Don CT said:
Shari's big play is to beef up the company enough to flip it.
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The merger combines two companies that are already public. All she can do is truly to build value and leave as much as sh e can in her trust and charities.
 
TheBigA said:
Maybe, or use the combined equity to make bigger buy. Perhaps for Discovery.
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Only if the bottom line and the stock value increases. Right now, in what would likely be a mostly equity deal, the multiples don't seem to work for Shari.

And, of course, Sumner's shares are in a trust that goes forward to the grandchildren.
 
TheBigA said:
I don't see that happening. The merger needs to create some new value that wasn't there before. Otherwise it's more of the same.
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This is why I don't understand why they split up in the first place. They would have had more leverage as a combined company.
 
TheBigA said:
They split up to make the Redstones more money. So now they're combining to make the Redstones more money.
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Seems like there should be some kind of anti trust thing going on when one person can control 2 large companies. She is basically the puppet master here.
 
https://deadline.com/2019/08/viacomcbs-board-members-executive-contracts-details-1202671815/

Update on who will be in the management of Viacom though.

Viacom and CBS followed last week’s merger news with regulatory filings Monday that laid out some key details of their long-awaited reunion, including executive compensation, board makeup and breakup fees.

Breakup fees are always part of the mix when it comes to mergers, but forgive the skeptics in media and on Wall Street if they find this clause to be especially relevant in the case of CBS and Viacom. In the SEC filings, if Viacom were to terminate the deal before May 13, 2020, it would owe CBS $373 million. If CBS were to pull out before that date, it would have to pay Viacom $560 million.

Bob Bakish, who has led Viacom as CEO since 2016 and is in position to lead the combined entity, has been signed to a four-year deal paying him a base salary of $3.1 million per year. He will be eligible to receive equity compensation with an aggregate target value of $16 million, plus a target annual cash bonus of $12.4 million, with the actual bonus determined based on a set of formulas.
Joe Ianniello, who will be chairman and CEO of CBS, reporting to Bakish, has also re-upped but only through the start of 2021. Under the terms of his contract at CBS, Ianniello will get a lump-sum payment of $70 million upon the close of the merger because he wasn’t given the top job.
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https://variety.com/2019/tv/news/viacomcbs-unlikely-pursue-starz-acquisition-talks-1203322778/

CBS has been mentioned to be unlikely in the Starz talks due to the recent Viacom/CBS Deal by the Redstones.

CBS may have previously expressed interest in acquiring Lionsgate-owned Starz, but now that the Eye has merged with Viacom, it’s unlikely that the newly formed ViacomCBS would look to actively pursue the premium cabler in the near term.

According to sources close to the situation, there have not been any substantive talks about a potential Starz acquisition since Viacom and CBS became ViacomCBS, and the combined entity is unlikely to explore an acquisition so soon after its own announced mega-merger, which is expected to close at the end of the calendar year.

ViacomCBS will be taking a “highly disciplined” approach to M&A and will not do anything to dilute shareholder value, per someone familiar with the company’s thinking, indicating that the company’s acquisitive strategy going forward will be conservative. Guggenheim Partners analyst Michael Morris noted Wednesday that ViacomCBS would “not entertain value-destructive acquisitions.”
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