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While NBC and Paxson continue their mating dance at the duop ball (B&C, Aug. 16), the new rules have rekindled talk of a CBS-Viacom merger of some sort. Sources confirm CBS CEO Mel Karmazin has repeatedly told associates he wants very much to acquire Viacom, which the government forced CBS to sell off in the 1970s.
But there's just one problem-Sumner Redstone. The Viacom chieftain also sees himself as a buyer, and has openly talked about the possibility of acquiring CBS. So, while each has its eye on the other, the issue of control is a major obstacle to any deal. "It's an absolutely perfect combination," says a Wall Street source. "The duopoly play is perfect and Viacom has strengths [production and cable] where CBS has weaknesses and vice versa." CBS' strengths are broadcast distribution, outdoor advertising and a budding Internet business.
Young Broadcasting has confirmed it will consider...