CBS Viacom Talking Merger.... Again

The talks are heating back up and that has stockholders excited.

The LA Times writes that shares of CBS Corp. and Viacom Inc. jumped after a report that the two companies were poised to once again explore a reunion, a long-sought goal of the companies’ controlling shareholder.

CBS’ board, which met Wednesday, recognizes it needs to take action to fortify the traditional broadcaster for the digital age. Smaller companies like New York-based CBS are under growing pressure to bulk up to compete during a period of rapid consolidation in the television industry as consumers migrate to streaming services.

Former CBS Chief Executive Leslie Moonves had been an obstacle to reaching a deal for CBS to buy Viacom, but he was forced to leave the company last fall amid a widening sexual harassment scandal. His ouster was a victory for Viacom chief Shari Redstone, the vice chair of CBS who agitated to modernize the company. Moonves, along with several of CBS’ independent board members, fiercely resisted Shari Redstone’s efforts last year to merge the two companies.

CNBC also reported that Viacom Chief Executive Robert Bakish would likely run the combined entity.