In a move that is expected to boost the fortunes of CBS, the two media companies have agreed to buy American broadcasting company NBCUniversal for $15.4bn.
The deal will give the two companies an combined 49.5% stake in the CBS brand.
NBCUniversal CEO Steve Burke told analysts the deal would allow NBCUniversal to be more aggressive in advertising and content.
The deal follows a year of talks between the companies and CBS over the future of the network.
Burke said the companies are close to a final agreement, but the final details are still being worked out.
“We’re just not there yet,” Burke said.
“It’s a great deal for the shareholders and we’re excited about it.”
Burk said NBCUniversal has already started its work on a new advertising model.
He added that the new deal would increase NBCUniversal revenues by up to $2bn in the US.
In a statement, NBCUniversal said: “This transaction is the result of our comprehensive business transformation strategy.
The acquisition of CBS will allow us to further expand our portfolio of products and services that are important to our shareholders, including CBS Sports and CBS SportsNet.
It also allows us to increase the value of our portfolio to help us better support our investors and attract new talent to our businesses.”
The agreement was signed in New York on Wednesday by the CEOs of both companies.
Burken said the deal is expected in the fourth quarter of next year, and CBS said it expects the deal to close by the end of the year.
American broadcast company NBC Universal said it is “very pleased to acquire NBCUniversal.
CBS is an iconic US media brand and a leading innovator and leader in entertainment content.”
Burkin said the acquisition would allow the two to continue their joint efforts to drive innovation in the media industry, including a new platform for advertising that will allow for more advertising across the media landscape.
Both companies said they expect the deal will create more than 1,000 jobs in the United States.
As part of the deal, NBCU will retain a 20% stake, with CBS holding the remaining 30%.
NBCU said it will continue to own the CBS television network.
Burk told analysts he expected the deal was a win for shareholders.
“[It’s] a great story for the country and it’s a win in the world,” he said.
Earlier this year, CBS announced it was buying a 21st Century Fox stake for $65bn.
Last week, Burke said NBCU’s strategy was to build a global network, but he said it would focus on local programming.
‘It’s not the most exciting deal’ for shareholders American broadcasting giant NBCUniversal is a US company and its parent company, CBS Corp, is a British company.
On Tuesday, NBC’s board voted to give the company a 50% stake.
The decision comes amid a slump in the stock market and uncertainty over the economy.
Shares of NBCUniversal have fallen 40% this year to their lowest level in more than two years.