Shari Redstone, the media heiress whose family controls CBS Corp and Viacom Inc, has offered CBS CEO Leslie Moonves to drop her demands for Viacom CEO Bob Bakish to be his No. 2 following a merger, as long as Bakish sits on the combined company’s board, people familiar with the matter said on Friday.
CBS shares rose 8 percent after Reuters first reported Redstone’s offer, giving the company a market value of $20 billion. Viacom shares were up 5 percent, giving it a value of $12.6 billion.
Redstone, daughter of media mogul Sumner Redstone, has offered not to give Bakish any executive role in the combined company, but still wants him to sit on the board of directors and eventually succeed Moonves, the sources said on Friday.
Moonves does not want Bakish to be part of the combined company at all - either as an executive or board member - because he is seeking as much autonomy as possible in running the combined company, said one of the sources.
As a result of the impasse over Bakish’s role, CBS executives have serious doubts that a deal will happen, the source said. CBS and Viacom have also disagreed about the stock exchange ratio that should be used in a merger, although the two sides are making progress on that front, the sources added.