WSJ : AT&T Expressed Interest In CBS To Shari Redstone Before Time Warner Deal

(RTTNews) - Before AT&T Inc. (T) Chief Executive Randall Stephenson set his sights on Time Warner Inc., he expressed interest in acquiring CBS Corp. (CBS) 0.53% and met with Shari Redstone, the executive whose family controls the media company, the wall street journal reported, people familiar with the matter.

At the New York meeting in 2016, Ms. Redstone, president of National Amusements Inc., which controls about 80% of the voting stock of CBS and its sister media company Viacom Inc., told Mr. Stephenson she wasn't interested in a deal, the report said.

Ms. Redstone didn't inform the CBS board or its chairman and chief executive, Leslie Moonves, of Mr. Stephenson's approach, people close to CBS said.

Mr. Moonves learned of AT&T's interest a few weeks later from Mr. Stephenson after AT&T made its bid for Time Warner, the report said. Mr. Moonves was upset Ms. Redstone had kept him out of the loop, the report said.

In a statement, Ms. Redstone's spokeswoman acknowledged that Ms. Redstone and Mr. Stephenson had a "brief introductory meeting" in 2016, but denied there was any expression of interest from Mr. Stephenson.

"Their discussion focused on changes in the media industry and how the two might work together in the future," Ms. Redstone's spokeswoman reportedly said. "Ms. Redstone does not recall any conversation regarding the potential sale of either CBS or Viacom. However, as NAI stated publicly in 2016—and as is its right as a shareholder—it had no interest in selling its controlling stake in either company at that time."

CBS has resisted Ms. Redstone's efforts to recombine the company with Viacom for almost two years, and now CBS and National Amusements are in a legal battle over control of the entertainment company.

Last year Verizon Communications Inc. made multiple approaches about a possible CBS deal and was told by Ms. Redstone that she wanted to put CBS and Viacom together before considering any offers, The Wall Street Journal reported.

National Amusements disclosed the approach by Verizon in a legal filing and affirmed it wasn't interested in giving up control of either CBS or Viacom. The filing didn't mention any takeover interest from AT&T.

AT&T closed its $81 billion Time Warner takeover earlier this month, making it among the most indebted corporate bond issuers in the world. The debt burden means the company will be busy paying down its obligations and supporting its dividend, though Mr. Stephenson still considers some CBS assets attractive, the report said

The initial CBS approach in 2016 was part of AT&T's broader review of media assets as it was contemplating possible deals; its main interest quickly became Time Warner, the report said.