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CBS shareholders to get slight premium from Viacom deal -sources

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CBS and Viacom are in the final stages of negotiation of an all-stock merger that values the latter at a discount to its closing price on Friday, two sources told Reuters.

Shares of CBS rose 1.6% to $49.70 in premarket trading, while Viacom fell 2% to $29.40.

Viacom shareholders will receive just above 0.595 CBS shares for each share they own, the sources said, adding that the final terms could still change.

The two companies are controlled by National Amusements, the holding company owned by billionaire Sumner Redstone and his daughter Shari.

The deal comes at a time when an increasingly competitive media landscape prompted the Redstones to reunify the two companies 13 years after breaking them up.

This is CBS's third attempt since 2016 to bring the U.S. entertainment companies together. Previous merger talks had failed because of clashes between executives over divvying up top jobs and the companies' relative valuation.

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Retail

Rite Aid names Heyward Donigan as CEO

Key Points
  • Rite Aid named Heyward Donigan as CEO, effective immediately, months after the drugstore chain announced its restructuring plan.
  • The plan includes a change in leadership and a reduction of 400 corporate positions, and is expected to save about $55 million annually and help the company ease the impact of fierce competition that has hurt sales.