The Viacom Power Struggle, Explained
- Competing suits on opposite coasts may decide Viacom control
- Rivals Dauman, Shari Redstone battle amid legal mess
Redstone Names New Trustees: Is Paramount Sale in Doubt?
It’s one of the stranger twists in U.S. corporate history: On Friday, Sumner Redstone kicked Viacom Inc. Chief Executive Officer Philippe Dauman off both the board of his family holding company, which manages his 80 percent stake in the entertainment producer as well as CBS Corp., and the trust that will run the empire when the 92-year-old no longer can. The following Monday, May 23, both men sued: Dauman asked a Massachusetts court to void the move, while Redstone turned to a California court to endorse it. It’s an ugly fight, with Redstone’s once-estranged daughter Shari in the middle, and it’s a mess legally. Here are some of the big issues:
Redstone removed Dauman and Viacom director George Abrams less than two weeks after a California judge dismissed a case by one of the billionaire’s ex-girlfriends, who claimed he was mentally incapacitated when he threw her out of his house last year. The judge didn’t address Redstone’s mental faculties but said it was clear he didn’t want anything to do with her and had the right to remove her from his life.