Viacom sets up special committee to explore remerger with CBS

CBS and Viacom formerly split in 2006. (Ben Munson)

Viacom’s board of directors today established a special committee of independent directors to evaluate a potential combination with CBS Corporation.

The committee is calling upon independent legal counsel and independent financial advisors to assist with the evaluation. But the company warned that this action does not guarantee a recombination of CBS and Viacom will happen.

“There can be no assurance that this process will result in a transaction or on what terms any transaction may occur. Neither Viacom nor the Committee intends to comment further until the process is completed,” the company said in a statement.

RELATED: CBS board discussing Viacom remerger today: report

Viacom’s statement today confirms reports that have surfaced throughout the last month suggesting National Amusements, the company that holds a controlling interest in both CBS and Viacom, is indeed actively considering a recombination. National Amusements also confirmed the process.

“National Amusements supports the processes announced by CBS and Viacom to evaluate a combination of the two companies, which we believe has the potential to drive significant, long-term shareholder value. National Amusements does not currently intend to make any further comments regarding the process,” the company said in a statement.

Earlier today, Reuters reported that CBS’s regularly scheduled board meeting today would at least in part concentrate discussing a potential remerger. CBS and Viacom formerly split in 2006.