CBS officials have not confirmed this report but the news of the split has pushed shares of CBS higher.
The CBS board is deep in settlement talks with CEO Les Moonvesthat would result in his departure and the appointment of COO Joe Ianniello as his interim replacement, people close to the negotiations told CNBC.
The talks have been going on for some time but have yet to reach a conclusion given continued back-and-forth about his exit package, the sources said.
While under his contract he is due as much as $180 million in severance and a production deal, the board is offering a roughly $100 million exit package made up almost entirely of CBS stock, sources said. They said the board also wants the right to claw back some of the compensation if it's determined that sexual harassment allegations against Moonves are confirmed.
As was widely reported Wednesday, CBS and its controlling shareholder, Sumner and Shari Redstone's National Amusements, are negotiating a settlement to end their litigation about whether the CBS board has the right to vastly dilute the voting power of NAI. While it is possible the settlement with Moonves and between CBS and NAI could be announced simultaneously, sources said they are not linked.