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Sumner Redstone Moves to Replace Ousted Trust Members Sumner Redstone Moves to Replace Ousted Trust Members
(35 minutes later)
The names put forward to replace the executives who were suddenly ousted from the trust and the board that will determine the fate of Sumner M. Redstone’s $40 billion media empire have close connections to his long-estranged, recently reconciled daughter, Shari Redstone, according to three people briefed on the matter. The names put forward to replace the executives who were suddenly ousted from the trust and board that will determine the fate of Sumner M. Redstone’s $40 billion media empire have close connections to his long-estranged, recently reconciled daughter, Shari Redstone, according to three people briefed on the matter.
The developments are likely to be cited by Viacom executives as evidence of Ms. Redstone’s behind-the-scenes role in the contentious shake-up over the weekend of the long-established succession plans for her father’s companies.The developments are likely to be cited by Viacom executives as evidence of Ms. Redstone’s behind-the-scenes role in the contentious shake-up over the weekend of the long-established succession plans for her father’s companies.
On Friday, two longtime confidants of Mr. Redstone were removed from their positions on the trust that will control Mr. Redstone’s companies after he dies or is declared incompetent. They were also separated from the board of National Amusements, the private theater chain company through which Mr. Redstone controls about 80 percent of the voting stock in Viacom and CBS, two of the world’s largest entertainment companies. On Friday, two longtime confidants of Mr. Redstone, 92, were removed from their positions on the trust that will control Mr. Redstone’s companies after he dies or is declared incompetent. They were also separated from the board of National Amusements, the private theater chain company through which Mr. Redstone controls about 80 percent of the voting stock in Viacom and CBS, two of the world’s largest entertainment companies.
Thaddeus Jankowski, the senior vice president and general counsel of National Amusements, is expected to be named to the trust, according to the people, who requested anonymity because the deliberations are private. Ms. Redstone is a director and president of National Amusements, where she holds a position of authority over Mr. Jankowski.Thaddeus Jankowski, the senior vice president and general counsel of National Amusements, is expected to be named to the trust, according to the people, who requested anonymity because the deliberations are private. Ms. Redstone is a director and president of National Amusements, where she holds a position of authority over Mr. Jankowski.
The other person expected to be appointed to the seven-member trust is an undisclosed friend of Ms. Redstone, two of the people briefed on the matter said.The other person expected to be appointed to the seven-member trust is an undisclosed friend of Ms. Redstone, two of the people briefed on the matter said.
Ms. Redstone’s daughter, Kimberlee Ostheimer, was also put forth to serve on the board of National Amusements, the three people said.Ms. Redstone’s daughter, Kimberlee Ostheimer, was also put forth to serve on the board of National Amusements, the three people said.
Upon Mr. Redstone’s death or upon him being declared incompetent, his control of the voting stock in Viacom and CBS is to pass to the seven voting member trust, with his five grandchildren as the beneficiaries. Ms. Redstone is vice chairwoman of Viacom and CBS and one of the seven members of the trust. Upon Mr. Redstone’s death or upon him being declared incompetent, his control of the voting stock in Viacom and CBS is to pass to the seven-voting-member trust, with his five grandchildren as the beneficiaries. Ms. Redstone is vice chairwoman of Viacom and CBS and one of the seven members of the trust.
Representatives for Mr. Redstone and Ms. Redstone could not immediately be reached for comment on Sunday. Mr. Jankowski and Ms. Ostheimer also could not be reached for comment.Representatives for Mr. Redstone and Ms. Redstone could not immediately be reached for comment on Sunday. Mr. Jankowski and Ms. Ostheimer also could not be reached for comment.
The developments come after Philippe P. Dauman, the chief executive of Viacom, was unexpectedly dismissed from the trust and removed from the board of National Amusements. George Abrams, a Viacom director, a representative of Mr. Redstone’s for 50 years, and an ally of Mr. Dauman, was also removed from both positions that day. The developments come after Philippe P. Dauman, the chief executive of Viacom, was unexpectedly dismissed from the trust and removed from the board of National Amusements. George Abrams, a Viacom director, a representative of Mr. Redstone’s for 50 years and an ally of Mr. Dauman, was also removed from both positions that day.
Their swift removal was seen as a major victory for Ms. Redstone in her quest to dictate the future of her father’s media empire. Ms. Redstone has publicly opposed Mr. Dauman’s leadership of Viacom.Their swift removal was seen as a major victory for Ms. Redstone in her quest to dictate the future of her father’s media empire. Ms. Redstone has publicly opposed Mr. Dauman’s leadership of Viacom.
The remaining trustees were considered to have views more sympathetic to Ms. Redstone. They include Tyler Korff, a son of Ms. Redstone, and Leonard L. Lewin, the divorce lawyer for Ms. Redstone’s mother, Mr. Redstone’s former wife of 52 years. Also on the trust are David R. Andelman, a CBS director, and Norman I. Jacobs, a lawyer who has represented Mr. Redstone.The remaining trustees were considered to have views more sympathetic to Ms. Redstone. They include Tyler Korff, a son of Ms. Redstone, and Leonard L. Lewin, the divorce lawyer for Ms. Redstone’s mother, Mr. Redstone’s former wife of 52 years. Also on the trust are David R. Andelman, a CBS director, and Norman I. Jacobs, a lawyer who has represented Mr. Redstone.
The weekend’s developments prompted immediate questions about whether or not Mr. Redstone, who is 92 and in poor health, was competent to make those decisions and what role Ms. Redstone might have played in influencing her father. The weekend’s developments prompted immediate questions about whether or not Mr. Redstone, who is in poor health, was competent to make those decisions and what role Ms. Redstone might have played in influencing her father.
Michael C. Tu, a partner at the law firm Orrick, Herrington & Sutcliffe, who said he was working on behalf of Mr. Redstone, said that Mr. Redstone decided to remove Mr. Dauman and Mr. Abrams after expressing concerns regarding the performance of Viacom, which has seen its stock price plunge 40 percent in the past year. Michael C. Tu, a partner at the law firm Orrick, Herrington & Sutcliffe, who said he was working on behalf of Mr. Redstone, said that Mr. Redstone decided to remove Mr. Dauman and Mr. Abrams after expressing concerns regarding the performance of Viacom, which has seen its stock price plunge 40 percent in the last year.
In a statement, Mr. Dauman called the moves “invalid and illegal” and said Mr. Redstone had lacked the capacity to have taken such steps. Other Viacom executives and directors also questioned Mr. Redstone’s competency and asserted that he had been manipulated by his daughter.In a statement, Mr. Dauman called the moves “invalid and illegal” and said Mr. Redstone had lacked the capacity to have taken such steps. Other Viacom executives and directors also questioned Mr. Redstone’s competency and asserted that he had been manipulated by his daughter.
In a statement on Saturday, Ms. Redstone said, “l fully support my father’s decisions and respect his authority to make them.”In a statement on Saturday, Ms. Redstone said, “l fully support my father’s decisions and respect his authority to make them.”