The agreement between Viacom and the CBS on the terms of their proposed merger particularly affected Viacom's shareholders.
As it is now known, CBS shareholders will own 61 percent of the new company in the future. Each stake in Viacom from both classes should be converted into 0.59625 shares of CBS.
As a result of the deal, the two companies controlled by the holding company National Excitement have completed a history of talks that have been marked by rubble and readmission in recent years. The merger will revive an old community: by their spin-off in 2006, the two companies had already worked under one roof.
The shares of Viacom and CBS are under pressure following the merger agreement
Viacom's proposed merger with the CBS has led Wall Street investors to fly on both shares Wednesday. Some critical comments by analysts were passed after agreeing to conditions frightened by the upcoming merger. The most heavily traded classes of shares of the two media groups have fallen more than 7 percent during the midterm. The day before, there were still different reactions to the course, depending on gender.
The result is to create "one of the leading entertainment companies" with a combined revenue of more than $ 28 billion. It is a new consolidation chapter in the US media industry, where the 21st Century Fox recently split or Time Warner is acquired by AT&T.
For analysts, the prospects are not necessarily rosy. Bernstein's house of analysis, for example, the CBS over the merger of two levels to "underestimate" those evaluated. Analyst Todd Fugger expects synergies to fade over the structural problems that CBS shareholders inherited from Viacom. Viacom, on the other hand, was downgraded to neutral by Australian investment bank Macquarie on Wednesday.
However, there are occasional positive feedbacks: Bank of America experts, for example, have used the momentum to upgrade CBS from neutral to buy. UBS's Jon Hodulik remained on his neutral ballot for both companies. However, he believes the $ 500m synergy target is conservative. According to him, merging can create a significant player in the race for the best content.
The two media companies announced on Tuesday after years of long talks that the much-discussed merger should be made through an exchange of shares. As it became known, shareholders of CBS will own 61 percent of the new company in the future. Each stake in Viacom from both classes should be converted into 0.59625 shares of CBS.
The merger is a kind of reunification, as the two companies were separated in 2006 alone. Viacom owns, among other things, the Paramount Pictures Cinema Studio and the TV channels MTV, Nickelodeon, BET and Comedy Central. The CBS corporation is known for many television channels, including the CBS network of the same name
/ Tih he / she / bek
NEW YORK (dpa AFX)