In this March 29, 2017, file photo, Shari Redstone attends the premiere of "Ghost in the Shell" at AMC Loews Lincoln Square in New York. (Photo by Evan Agostini/Invision/AP, File)
NEW YORK (AP) --
CBS is suing its controlling shareholder as part of its long-running attempt to avoid a combination with Viacom.
Both companies are controlled by National Amusements. That's the holding company run by Shari Redstone, the daughter of media mogul Sumner Redstone. Though National Amusements abandoned a proposal for CBS and Viacom to combine in 2016, CBS fears it may come up again.
Now, CBS is suing to block any interference by National Amusements ahead of a CBS board vote on a dividend that would dilute National Amusements' voting interest from 79 percent to 17 percent. CBS says that would make CBS independent and allow it to "more fully evaluate strategic alternatives."
National Amusements says it is "outraged" and has no intention of forcing a deal not supported by both companies.
Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)
DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.
The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.
The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.
DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.
"While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.
The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.
The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.
DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More
