National Amusements, Viacom’s controlling stakeholder, is gunning for the deal. Incidentally, Viacom and CBS split 10 years ago.

National Amusements, the company which has a controlling stake in Viacom, has stated that the merger of Viacom Inc. and CBS Corp would provide substantial saving.

Significantly, it will not support the acquisition of either company by a third party. Furthermore, it will also “not support a transaction that would cause it to surrender control of either company or combined entity.”

Viacom and CBS separated a decade ago.

“We believe that a combination of CBS and Viacom might offer substantial synergies that would allow the combined company to respond even more aggressively and effectively to the challenges of the changing entertainment and media landscape,” said a letter signed by Sumner Redstone and his daughter Shari Redstone.

In its letter to both boards National Amusements has stated that the structure of an ideal deal would be an all-stock transaction in which shareholders of both companies receive shares in the combined entity of the same class as they currently hold.

The letter has clarified that Sumner Redstone, Shari Redstone and David Andelman will not vote as directors on the deal and nor will they participate in its deliberations.

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