Shareholders Back CBS-Viacom Merger, Clear Path for Approval
Shareholders of CBS Corp. and Viacom Corp. on Wednesday overwhelmingly approved their proposed $36-billion merger, clearing a final path for federal regulators to weigh the largest media combination in history.
Company officials plan to renew their pitch to regulators, who are closely scrutinizing the deal, shortly after the holidays.
In New York Stock Exchange trading, CBS stock fell 50 cents to close at $60.31, and Viacom fell 31 cents to close at $58.
The proposed merger would run up against government restrictions on the percentage of the national audience that one company may reach through its owned TV stations. Another rule bars a company from owning more than one TV network in certain combinations--a category that CBS and Viacom, with its half-interest in the UPN television network, would fall under.
Company executives have indicated they would try to change rules to get more control of the network, but CBS President and Chief Executive Mel Karmazin would not comment after the stockholder meeting.
About 99.7% of Viacom shareholders and 98.7% of CBS shareholders approved the transaction in separate votes.
Karmazin said that the merged company planned to keep the CBS brand name alive.
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