NEW YORK (TheStreet) -- Shares of CBS (CBS) - Get Report were advancing in early-afternoon trading on Wednesday as Sumner Redstone's National Amusements, which is the controlling shareholder of the company and Viacom (VIAB), is preparing to ask the two media companies to explore a merger, Reuters reports, citing sources.
NAI could contact the two companies as early as this week to ask them to create independent board committees to explore a deal, one source added.
Privately-held NAI is a movie theater company owned by Redstone and his daughter Shari Redstone. The company owns 80% of the voting shares of Viacom and CBS, Reuters noted.
New York-based CBS spun Viacom off 10 years ago, but Shari Redstone has been in favor of merging the companies, sources said previously.
Shares of Viacom were gaining in midday trading today
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on CBS stock.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, notable return on equity and expanding profit margins.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CBS