Viacom Board Naming Special Committee to Review CBS Merger

Viacom Inc.'s board of directors is forming its special committee to explore a potential merger with CBS Corp., and most members will be newcomers handpicked by Shari Redstone, whose family controls the companies, according to people familiar with the matter.

On a conference call Friday morning, the board is expected to appoint a special committee made up largely of new directors who were named to the board in the wake of a bruising power struggle this summer between the Redstone family and Viacom's management, which led to the ouster of former Chief Executive Philippe Dauman.

The new board members include Chairman Thomas May, Kenneth Lerer, Nicole Seligman, Judith McHale and Ronald Nelson. The special committee is also expected to include one longtime Viacom director, Charles Phillips.

"There will be a balance more on the new side than the old side," one person predicted. Mr. Phillips will be tapped because of his considerable experience with merger and acquisitions, the person said.

The special committee is hiring law firm Debevoise & Plimpton to advise it, according to people familiar with the matter.

This week, the Redstones' holding company, National Amusements, sent a letter to the boards of Viacom and CBS calling on them to explore a reunion of the media giants. National Amusements is the controlling shareholder in both companies.

Write to Keach Hagey at [e-mail] and Joann S. Lublin at [e-mail]

(END) Dow Jones Newswires

September 30, 2016 11:25 ET (15:25 GMT)

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