National Amusements Asks CBS, Viacom Boards to Weigh Merger

Pedestrians walk past CBS Corp. headquarters in New York.

Photographer: Michael Nagle/Bloomberg

National Amusements Inc., the controlling shareholder of CBS Corp. and Viacom Inc., asked the two media giants to consider a merger.

A combination could produce cost savings and help the companies contend with a changing media industry, the holding company owned by the Redstone family said in a statement Thursday. National Amusements won’t consider a takeover by a third party or any deal that would require it to surrender control of CBS or Viacom, it said.

Shari Redstone, Sumner Redstone and David Andelman would recuse themselves from participating in the review of a potential merger of the two companies because of their affiliation with National Amusements, the holding company said. National Amusements said an all-stock transaction would be the optimal structure for a deal.

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