Shares of CBS Corp. rallied 1.4% and of Viacom Inc. VIAB, +1.54% gained 1.3% in afternoon trading Tuesday, after the media and entertainment companies announced a deal to merger, creating a combined company–ViacomCBS Inc.–with more than $28 billion in revenue. Under terms of the much-anticipated all-stock merger, each Viacom Class A share VIA, -6.39% will convert into 0.59625 Class A shares of CBS CBS.A, +2.62% and each Viacom Class B share will convert into 0.59625 CBS Class B shares. At current stock prices, Viacom’s market capitalization is $11.55 billion and CBS’s market cap is $18.08 billion. The deal is expected to close by the end of 2019. The deal will add to earnings and is expected to deliver $500 million in annualized synergies with 12-to-24 months of the deal’s closing. CBS shares have rallied 10.8% year to date and Viacom’s stock has advanced 12.0%, while the S&P 500 SPX, +1.64% has gained 16.8%.