Taking Redstone’s job will be Les Moonves, who was nominated by Sumner’s own daughter, Shari, who has been lobbying for her father’s ouster from the firm he founded.
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Sumner Redstone, whose deep involvement in the companies he controls for years been a hallmark of his ownership, resigned as executive chairman effective February 2, the company said.
“I am honored to accept the chairmanship of this great company”, Moonves said. His daughter, Shari, will continue to vice chair of the CBS Board, a post she has held since 2005.
The agreement may accelerate what had eventually been expected to pass. Moonves had reportedly struck a private agreement with Shari Redstone, under which he was to be named chairman of CBS after Sumner Redstone’s death.
Viacom’s board is scheduled to meet Thursday, though the company hasn’t said what it will discuss.
Viacom (VIAB – Get Report) stock is spiking by 11.37% to $49.75 in after-hours trading on Wednesday, on the expected replacement of Executive Chairman Sumner Redstone.
Redstone says that the family trust states that she will succeed her father as non-executive chair at CBS and Viacom. Her business acumen and knowledge of the media space remain very important to me as we move forward, and I greatly appreciate her support and invaluable counsel.
Manuela Herzer, Redstone’s former girlfriend, filed a lawsuit in Los Angeles Superior Court in November, claiming that Redstone’s mental capacity was deteriorating and that he should be examined and declared incompetent to run Viacom and CBS.
Herzer contends that Redstone is unable to speak and can not meaningfully engage in decision-making about his medical care or other subjects.
In December, Mario Gabelli, chairman of of GAMCO Investors, the second-largest voting shareholder of Viacom, told Reuters that Viacom should disclose Redstone’s mental competence. It is a meritless action, riddled with lies, and a despicable invasion of his privacy.
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The judge declined to grant Herzer a deposition of Redstone. The aging executive’s health has been at the center of a court battle, with a former companion battling to regain control of his health care.
