Sumner Redstone's National Amusements wants CBS (CBS) - Get Report  to merge with entertainment giantViacom (VIAB) - Get Report , a move that would reunite two companies that split in two in 2006.

TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust Portfolio, said on CNBC's "Cramer's Mad Dash" segment, that CBS is in a good position to negotiate. UBS upped its CBS recommendation to a buy from a sell, pointing to improvements in CBS' business, noted Cramer. 

"This indicates they (CBS) have the upper hand in any negotiations," Cramer said. 

He said the upgrade of CBS has him thinking about shares of other entertainment giants: Walt Disney (DIS) - Get Report  , owner of ABC, and Comcast (CMCSA) - Get Report  , owner of NBCUniversal. 

"You have UBS raising numbers at CBS. I thought these networks were dead. You never hear anyone talking about ABC and Disney. Is it possible that these stocks are undervalued?" Cramer asked.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.