Media
If CBS CEO Moonves Is Dumped, Odds of Viacom Merger Jump
Published:
Last Updated:
The board of CBS Inc. (NYSE: CBS) will meet as early as today to discuss sexual harassment charges against CEO Les Moonves, according to several major media outlets. The board could suspend him during an investigation, or fire him immediately, sources say.
This is 24/7 Wall St.’s take on the story from two days ago:
Widely admired CBS Corp. CEO Les Moonves has a big problem. The New Yorker ran an article that charged that he sexually harassed six women. The typical pattern for charges like this is that the company board hires outside counsel and the results are announced to the public once the process is complete. Moonves is not only the head of CBS. He is also the major force behind an effort to block a marriage between CBS and Viacom Inc. If he is pushed out, the merger becomes almost certain.
The Redstone family has controlling interests in both CBS and Viacom. Shari Redstone, who sits on both boards, believes the two entertainment companies should be together. Her argument is reasonable. The two companies together could cut costs. Each company is up against powerful and large competitors, including Walt Disney Co., which is buying a number of assets from Twenty-First Century Fox for $71 billion. This may make Disney the largest entertainment company in the world. AT&T Inc. just bought Time Warner, which gives it a range of entertainment properties to add to its wireline, wireless and satellite distribution operations. The merger of large entertainment companies may not be over. These traditional media operations effectively have been challenged by tech companies that are also now entertainment operations, with Amazon at the head of the list.
Redstone has been challenged by the CBS board led by Moonves, who believes she should not control CBS and Viacom on her own. Boards, they argue, have a function. Among these is to decide what is best for shareholders. Moonves believes a tie-up with Viacom is a bad idea.
Another wrinkle in the drama was that Moonves eventually wants his chief operating officer to run a combined company if there is one. This puts the Moonves pick, Joe Ianniello, up against Redstone’s pick to take over a combined operation, Viacom CEO Bob Bakish. Redstone has dropped the demand, but if Moonves is pushed out, her decision might change.
The biggest hurdle between Redstone and her vision of a merged CBS and Viacom is Moonves, and he could be gone soon.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
