Redstone Unites CBS, Viacom; Eyes Future Sale

and Viacom Inc. boards are finalizing a merger, with an announcement anticipated Monday, which will create a combined media entity valued at approximately $30 billion under the leadership of Shari Redstone.

This merger, driven by Shari Redstone of National Amusements, Inc. since 2016, aims to achieve synergies in a converging media landscape marked by cord-cutting.

Viacom CEO Robert Bakish is expected to lead the new company, despite CBS's larger market capitalization of $18 billion compared to Viacom's $12 billion, making the deal appear as a merger of equals. CBS chief Joseph Ianniello's contract extension is under consideration to strengthen the management team.

The transaction represents a significant victory for Shari Redstone, who overcame resistance from former CBS CEO Les Moonves. Looking ahead, Redstone plans to either expand the media empire, potentially acquiring Discovery, Inc., or ultimately sell the combined entity to a cash-rich tech giant like Amazon or Apple, as the $30 billion company remains a smaller player compared to AT&T ($251 billion) and Comcast ($400 billion).

However, tech companies currently show little interest in acquiring content from established players, preferring to create their own, which means any sale will be years away, according to sources close to the matter.