CBS and Viacom are close to a merger agreement

The advice of US media group CBS Corp. and Viacom are about to agree on the price of the action in the long-awaited merger between the two groups, sources close to the file said.

The operation, which will take the form of a full exchange of shares, is being discussed, as the exchange rate of the two companies is also discussed. This means that the value of Viacom in this transaction is close to its current market value.

According to the prices of the two groups on the NYSE yesterday, the exchange rate of the shares will be 0.588 shares of "CBS" for each share of "Viacom".

According to sources, the two companies are trying to reach an agreement on the share price and the announcement of the merger today, although this announcement may be postponed until tomorrow.

Both groups discussed the merger for the last time more than a year ago. Sources at the time said that Viacom's board of directors had approved 0.6135 CBS shares for each of its voting rights. The two companies now plan to reduce new expenses by $ 500 million a year after the merger agreement is reached, after Viacom has reduced its operations by about $ 300 million.

The new entity will include the most-watched television network in the United States, with the acquisition of the Paramount film producer and pay TV channels such as MTV and Nickelodeon. If announced today or tomorrow, the agreement will put an end to years of unsuccessful merger attempts between the two companies. According to Viacom's stock price at the close of trading last week, the group's market capitalization stands at $ 12 billion.