CBS and Viacom deal to miss August 8 deadline

Bob Bakish

CBS and Viacom are unlikely to reach an agreement for the merger of the companies in time for the former’s earnings release.

According to CNBC sources, the broadcast giants had originally hoped to have a deal in place by August 8. 

The one remaining issue in place is reportedly the exchange ratio, which is still being negotiated.

Neither CBS or Viacom are expected to answer any questions on the merger in their respective earnings calls. 

It is still expected that a deal will be closed in the coming days.

Sharri Redstone, vice chairman of the board for both Viacom and CBS, has publicly endorsed a potential deal, saying that it would give them a better financial position to compete for entertainment and sports rights. 

Earlier this week it was reported that the pair had agreed on a management team for the merged company, the only other roadblock standing in the way of a deal. 

Viacom CEO Bob Bakish is expected to take up the same position with the merged organisation. 

Acting CBS CEO Joe Ianniello, who last September replaced disgraced former CEO Leslie Moonves following multiple accusations of sexual harassment and assault, is set to be offered a job overseeing all CBS-branded assets.

CBS chief financial officer Christina Spade is set to continue in this position for the combined company.