“He has his own team of independent advisors to counsel him”, said Nancy Sterling. “Sumner makes his own decisions regarding whom he wants to see both in his home and elsewhere”.
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On Friday Shari Redstone, the vice chair of both CBS and Viacom, appeared to consolidate that power after her father dismissed both Dauman and Abrams from the board of National Amusements Trust, the Redstone family trust that has a controlling shareholding in both companies.
The outcome of the court cases, and who ends up with control over the trust, and over the National Amusements board, will have wide-ranging implications for Viacom and CBS shareholders and could result in changes at the top of both companies, possibly through mergers and acquisitions. In February, Ms. Redstone voted against Mr. Dauman’s ascent to the chairman position of Viacom.
Chief Executive Officer Philippe Dauman sued to block his removal from the family trust of the company’s controlling shareholder, Sumner Redstone, arguing that the move goes against the well-established plans of the 92-year-old billionaire, according to reports.
Viacom said in a new statement on Saturday, “There has been no communication from Sumner Redstone”.
But on Monday Dauman and Abrams asked a MA family court to invalidate the order for their removal, saying it represents “an unlawful corporate takeover” by Shari Redstone. Suits and countersuits have been filed as the Redstone saga continues.
The lawsuits are the latest salvos in a legal battle over the fortune amassed by Redstone, who turns 93 on Friday and requires a feeding tube along with round-the-clock care to stay alive.
George Abrams, a member of the Viacom board who is close to Dauman, was also removed from the trust, the source said, speaking on condition of anonymity due to the sensitivity of the matter. Both companies slashed his compensation for 2015, and Viacom this week cut his pay entirely for its 2016 fiscal year.
Viacom shares rose 3.6 percent to $40.34 on Monday, signaling some investors welcome a change in management.
One prominent Wall Street analyst on Monday called the situation “toxic”. Redstone insists he doesn’t want to sell any part of Paramount, which was just about the only proposed action by Dauman that seemed to perk up pessimistic investors.
Dauman said Redstone is being “manipulated” by his daughter. “In fact, she has recently and repeatedly arranged to den y requests for Viacom Board members to meet with her father”, Dauman said in a statement.
This ousting has sparked debates as to whether or not Sumner is mentally sound enough to make such decisions anymore, and whether Shari is guiding his hand in a manipulative and possibly illegal manner.
The case, which claimed that Redstone was “a living ghost”, shined a spotlight on Redstone’s health.
On Monday Redstone’s lawyers countered with a petition asking Los Angeles state superior court to confirm the validity of the dismissal of Dauman and Abrams. The magnate’s “multi-billion dollar businesses have been seized by an estranged daughter who has manipulated her father to achieve her goals”, the suit charged. Long ostracized by her father, Ms. Redstone has said recently that the two have patched up their relationship. The move to remove Dauman and Abrams as trustees upends “his decades-long plan of succession and careful estate planning”, they said.
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The removal of Abrams and Dauman “will illegitimately tip the balance of power to her”, the lawsuit reads.
