CBS stock posted a sharp late Monday gain on the news that the CBS board is planning to “test the market” when it comes to finding a potential buyer.
CBS stock closed on Monday up 3.1% to $57.04. The report of the move from the board possibly seeking a buyer came from Fox Business.
Following the departure of longtime CEO Les Moonves in early September, the CBS board was revamped with two members departing -- Bruce Gordon and William Cohen -- and six new members joining the TV media company’s board of directors.
The restructuring of the board looks to aid CBS majority owner National Amusements and its president Shari Redstone, according to analysts. She had been pushing CBS and Viacom to re-merge; the two companies separated in 2006.
National Amusements is also the majority owner of Viacom. For a long time, CBS has resisted recombining the companies.
As part of other moves, the board placed former Time Warner and Citicorp exec Richard Parsons, as interim chairman of the board of CBS, two weeks ago.
After Moonves’ departure due to sexual harassment issues, National Amusements and CBS settled all litigation. At the same time, CBS elevated Joe Ianniello, COO, to interim president-CEO, CBS.
In addition, National Amusements cannot institute a procedure to re-merge CBS with Viacom for two years -- although the boards of each company could make efforts.