The article quoted a letter to Viacom’s lead independent director Frederic Salerno saying, “We want to understand what is happening with you”. This is a brazen and demonstrably invalid attempt by Ms. Redstone to gain control of Viacom and its management in disregard of Sumner Redstone’s wishes and to undermine the current Board’s ability to represent the best interests of all of the stockholders of Viacom. “He fully supports the steps taken today by National Amusements”.
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Redstone and his daughter, Shari Redstone, own National Amusements, the privately held company in MA that controls 80% of the voting stock of Viacom and CBS Corp.
The case was filed in DE because Viacom is incorporated there along with more than half of the U.S.’s publicly traded companies and 63 percent of Fortune 500 firms. One of these members includes CEO Philippe Dauman, who has been Redstone’s biggest target for months. It’s likely to be a messy and embarrassing affair, with her cast as the villain, based on company filings today at Delaware’s Chancery Court.
Sumner Redstone has removed five members from the Viacom board, including CEO Philippe Dauman. National Amusements also filed an injunction to keep the current board from taking any further action.
In another incident, Tom Freston, Dauman’s predecessor at Viacom broke his long maintained public silence and said that to serve the best interest of everyone mainly the employees the matter should be solved and ended. While willing to consider such a move, Redstone’s handlers said he wanted a more definitive briefing on why the change would benefit the company’s shareholders.
Lawyers for Redstone, meanwhile, went to court in Los Angeles seeking to validate Dauman and Abrams’ removal from National Amusements. Among the topics that remain to be resolved – which state court should have jurisdiction – one in MA, where National Amusements was formed, or one in California, where Redstone now lives.
The health of the 93-year-old Mr Redstone and his daughter Shari’s influence over him have been questioned. “We will continue to have great respect and affection for Mr. Redstone, but he is clearly being manipulated by his daughter, Shari”. The four other Viacom board members to be replaced are George.
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Shari Redstone’s spokesperson, Nancy Sterling, did not immediately respond to a request for comment from BuzzFeed News. He also called the present VIACOM board “complicit in the inactivity of VIACOM” and out of touch with the company’s viewers.
