Shari Redstone, whose family controls CBS Corp. and Viacom Inc., wants executives from both companies to run the combined entity after a merger, according to people familiar with the matter, putting her at odds with a proposal from CBS.
Redstone won't support combining the companies without Viacom boss Bob Bakish in a top management role, said the people, who asked not to be identified discussing private information. CBS's proposal calls for CEO Les Moonves and his team to run the combined company, the people said.
CBS's proposal values Viacom below its current market price, with an offer of 0.55 of its shares for each of Viacom's class B, the people said. Viacom was seeking an opening offer that valued its operations at least at market rate, as well as a role in the management of the company. A special committee of Viacom's independent board members is working on a quick counteroffer, the people said.