CBS Discussed Buying Starz Days Before Announcing Viacom Deal

(Bloomberg) -- CBS Corp. was weighing the idea of buying the Starz cable network just days before announcing its merger with Viacom Inc., according to a regulatory filing.

CBS Chief Executive Officer Joseph Ianniello and Viacom Chief Executive Officer Bob Bakish discussed CBS’s “continued interest” in a potential deal with “Company A” on July 31, according to the filing. The target was identified as Starz, according to a person familiar with the matter. CBS and Viacom announced plans to merge on Aug. 13.

CBS previously offered about $5 billion to acquire Starz, which is owned by Lions Gate Entertainment Corp. But Lions Gate executives wanted more and the discussions ended after that, the person said.

The filing also revealed disagreement over which name should come first when CBS and Viacom combined. CBS preferred the company be called “CBSViacom” But National Amusements Inc., the Redstone family company that controls both media giants, proposed calling it “ViacomCBS,” which ultimately won out as the new name.

The merged company will be listed on NASDAQ under the new ticker symbols “VIACA” and “VIAC.” CBS expects the Viacom deal to close before the end of this year.

To contact the reporter on this story: Gerry Smith in New York at gsmith233@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob Golum

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