Viacom is demanding CBS increase its takeover bid by $2.8bn, meaning a 20 per cent uplift on the original offer.
CBS had reportedly offered around $12bn, which is below it current market capitalisation of $12.7bn. The offer was quickly rejected by Viacom. Viacom has countered asking for $14.8bn. The exchange shows the gap between what CBS is willing to offer and what Viacom is prepared to accept to bring the two companies that were split in 2006 back together.
National Amusements, the Redstone family group that holds nearly 80 per cent of voting shares in each entity, is in favour of a deal to combine the two as it believes that a merger would unlock up to $1bn worth of synergies. However, the top management at the two companies have struggled to find common ground on valuation as well as leadership questions.