Viacom's stops exploring CBS merger, shares plunge
Viacom Inc. said Monday that it has stopped exploring a potential merger with CBS Corp. , after Sumner Redstone's National Amusements Inc. withdrew its support. The media giant said it has dissolved the special committee that it had formed to evaluate a potential merger. Separately, the company named Bab Bakish as its chief executive officer, effective immediately; Bakish was acting CEO since Nov. 15. "I am very excited by the strategy Viacom is pursuing under Bob's leadership, as well as the relentless hard work and passion he has demonstrated not only in his fast start at the helm but in his many years at the company," said Shari Redstone, vice chair of the board. Viacom's stock plunged 9.5%, the biggest one-day selloff in 10 months, while CBS shares slipped 0.8%. Viacom's stock has not tumbled 15% year to date, while the S&P 500 has gained 10%.
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