CBS Corporation CBS shares were trading higher Thursday on word that the company's board may be preparing for merger talks with Viacom, Inc. VIAB that would begin in June, according to CNBC's David Faber.
What Happened
It isn't the first time reports have emerged that CBS is flirting with the idea of a Viacom tie-up. On-again, off-again speculation of a merger has been occurring for some time, although the two companies have yet to talk directly, according to CNBC.
Earlier this month, CBS made a $5-billion offer to Lions Gate Entertainment (NYSE: LGF-A) to take the premium network Starz off its hands. The talks are ongoing.
What's Next
If CBS and Viacom make progress on a merger discussion, CNBC said Viacom CEO Robert Bakish would likely run the combined entity. Shari Redstone, vice chairwoman of CBS and Viacom, has long been in favor of a combination, the report said.
Price Action
CBS shares were trading higher by 3.4 percent at the time of publication Thursday, while Viacom shares were rallying by more than 6 percent.
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