Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
A large sign and logo greets visitors to CBS's Television Studios. Photo: George Rose/Getty Images
CBS’ board has voted to dilute the voting power of its majority owner, National Amusements Inc. (NAI), and it’s majority stakeholder, Shari Redstone, by over 60%, limiting her ability to replace the company's board.
Why it matters: The move is mostly symbolic, because nothing can actually go into effect until a Delaware judge reviews the merits of CBS’ lawsuit against NAI, which attempts to remove Redstone’s control and dilute her shares.
The court dealt a blow to CBS Thursday by voting in favor of Redstone, not granting CBS a restraining order against her.
The issue: Whether CBS will merge with Viacom, a cable company also majority owners by NAI and formerly combined with CBS.
- Sources tell Axios CBS would rather merge with a company that’s better positioned in the market to distribute digital content, like a tech or telecom company, than a cable company whose many channels would make it harder to negotiate with cable companies for retransmission fees.
- In court documents revealed Monday, CBS said Redstone told a company (sources say is likely Verizon) that CBS is not for sale.
The bigger picture: It’s the latest step in a week-long feud between CBS and is parent company of over 20 years for independence so that it can avoid a merger with Viacom, which is owned by the same parent company.
What they're saying: In a statement, NAI says “it has no intention of forcing a merger that is not supported by both CBS and Viacom.”
- “Today’s board vote, while couched as an effort to prevent such a transaction, was pure pretext. CBS management and the special committee cannot wish away the reality that CBS has a controlling shareholder. NAI yesterday exercised its legal right to amend the company’s bylaws to require a supermajority vote on certain board actions with respect to dividends, effective immediately. In light of the Board’s action today, that action was plainly necessary, and it is valid.”