CBS offer for Viacom below market: source

Les Moonves has gone bargain-hunting.

Moonves, the CBS chief executive, saw the media giant make a bid for Viacom that is slightly under the share price of the MTV parent — even when factoring in the conglomerate’s 6.2 percent stock price tumble on Tuesday.

CBS did not disclose the price of the all-stock bid, but a source close to the deal talks said it was for just under Viacom’s market cap.

Viacom — the owner of Comedy Central, BET and Paramount Pictures — will likely come back with a counteroffer, the source said.

CBS is proposing that its current management team, led by Moonves, run the combined company.

CNBC reported earlier Tuesday that Viacom President and CEO Bob Bakish wanted to be the second-most senior executive if the companies, both controlled by media mogul Sumner Redstone’s National Amusements Inc., were to reunite.

Viacom shares Tuesday, after reports on Monday said a bargain basement offer was in the offing, fell $2.40, to $36.40. CBS rose 4.2 percent, to $52.86.

While the Redstone family is pushing a merger, it may not happen, according to a Jefferies analyst report.

“A take-under would make it very difficult to consummate a deal,” the report said. “In our view, it will be interesting to see to what extent a stalemate could translate to other potential bidders for either asset.”

CBS, Jefferies said, is trying to buy Viacom when it is trading at a low multiple.

“Viacom is among the least expensive stocks in the S&P 500, before considering normalized Ebit at Paramount,” Jefferies said.

“Since early December 2016, Viacom’s 12-month forward earnings per share multiple has compressed from 10.5 times to 7.5 times,” the Jefferies report said.

CBS and Viacom both declined to comment.