NEW YORK (TheStreet) -- Shares of Viacom (VIAB) - Get Report were rising in mid-afternoon trading on Friday as the company's board prepares to appoint a special committee to review a potential merger with media company CBS (CBS), the Wall Street Journalreports, citing sources.
Earlier this week, Viacom's controlling shareholder National Amusements sent a letter urging the two companies to consider a deal. This comes after CBS spun-off from Viacom in 2006.
National Amusements is a privately-held movie theater company which owns 80% of the voting shares of both companies.
During a conference call today, New York-based Viacom's board is expected to name members to the committee.
The committee will be comprised largely of newer directors of the board who were appointed by Redstone and his daughter Shari earlier this summer, sources said, the Journalnotes.
Shares of CBS were edging lower in mid-afternoon trading on Friday.
Separately, TheStreet Ratings objectively rated Viacom 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.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and generally higher debt management risk.
You can view the full analysis from the report here: VIAB