National Amusements, the majority stakeholder in both, CBS and Viacom, is pulling its support for the merger between the media giants that was outlined in September. Jeanne Yurman reports.
The merger between Viacom and CBS is off. In a statement Monday, National Amusements, Sumner Redstone's holding company and majority stakeholder of both media companies, said it was withdrawing its support for the merger. The statement signed by Redstone and his daughter Shari says, now is not the right time for a merger. "Based on our assessment of the strengths, progress and future prospects of both companies, we are requesting that the boards discontinue their discussions at this time and instead focus on their independent paths forward." In September National Amusements had said a combined company would best equip the media giants to deal with the challenges of the changing entertainment and media landscape - with especially younger viewers migrating to online content. On the news, shares of both Viacom and CBS moved lower in early trading.