CBS To Buy King World

In a bid to take the lead in syndication, CBS Corp. on Thursday announced it's buying King World Productions in a $2.5 billion stock deal.

Under the terms, King World (KWP) shareholders will receive 0.81 shares of CBS (CBS) for each of their King World shares. CBS expects to issue about $2.5 billion in stock to complete the deal.

CBS shares ended down 3/16 to 40 13/16 ahead of the long-rumored news while King World's rose 1/2 to 30 9/16.

King World distributes The Oprah Winfrey Show, Wheel of Fortune, Jeopardy! and Hollywood Squares, shows that Leslie Moonves, president and CEO of CBS Television, called the "crown jewels of syndication" in a statement.

King World's chairman, Roger King, said the company had "considered many strategic options over the last several years and this merger is by far the most attractive.

"With King World in the fold, CBS will be even better positioned to meet the increasing competitive challenges of the future," he added.

Upon closing, Roger and Michael King, CEO, will continue in their current positions at King World and will report to Moonves, CBS said.

Written by Emily Church