Millions Being Spent To Explore Viacom, CBS Merger

The two main pieces of the family’s $40 billion media empire — Viacom and CBS — are set to spend tens of millions of dollars on an army of bankers, lawyers and advisers as the companies work to determine if a merger of the two companies is feasible, report The NYPost.

The Redstone’s National Amusements Inc., which owns 80 percent of the voting rights of both companies, asked the two media giants in September to look into a merger.

Viacom’s independent committee, established to weigh the pros and cons of such a combo, said Friday it hired Morgan Stanley, Allen & Co. and LionTree Advisors.

It is also working with PR agency Sard Verbinnen.

Banks usually work on a percentage fee basis, while law firms charge anywhere upward of $1 million a month.

PR firms can charge anywhere between $50,000 to $250,000 a month, sources said.

Separately, sources say, the real question is whether CBS will pay any kind of premium for Viacom.

The two were part of the same company until 2006 when they separated.

“The only question is whether Viacom deserves a premium,” a source added. “Is it growing or shrinking?”