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Sumner Redstone Moves to Replace Ousted Trust Members Sumner Redstone Moves to Replace Ousted Trust Members
(about 9 hours later)
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 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 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 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, 92, were unexpectedly 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 unexpectedly 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.
One person expected to be named to the trust is Thaddeus Jankowski, the senior vice president and general counsel of National Amusements, according to people with knowledge of the development, 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.One person expected to be named to the trust is Thaddeus Jankowski, the senior vice president and general counsel of National Amusements, according to people with knowledge of the development, 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.
Viacom executives and directors on Saturday questioned Mr. Redstone’s competency in making the sudden changes and asserted that he had been manipulated by his daughter.Viacom executives and directors on Saturday questioned Mr. Redstone’s competency in making the sudden changes and asserted that he had been manipulated by his daughter.
On Sunday evening, Mr. Redstone released a statement through a spokesman in which he attested to being independent and “engaged, attentive and as opinionated as ever.” He also disputed claims made over the weekend by Viacom directors and executives that company directors had been denied access to him.On Sunday evening, Mr. Redstone released a statement through a spokesman in which he attested to being independent and “engaged, attentive and as opinionated as ever.” He also disputed claims made over the weekend by Viacom directors and executives that company directors had been denied access to him.
According to the statement, Mr. Redstone is opposed to the plans underway by Viacom leadership to sell a stake in Paramount Pictures, the film and television studio. Philippe P. Dauman, the chief executive of Viacom, has said that a deal should be reached by the end of June.According to the statement, Mr. Redstone is opposed to the plans underway by Viacom leadership to sell a stake in Paramount Pictures, the film and television studio. Philippe P. Dauman, the chief executive of Viacom, has said that a deal should be reached by the end of June.
“Mr. Redstone regrets that Mr. Dauman has diverted resources to these baseless attacks and misrepresentations, rather than focusing on the continuing challenges that are faced by Viacom,” the spokesman, Mike Lawrence, said in the statement.“Mr. Redstone regrets that Mr. Dauman has diverted resources to these baseless attacks and misrepresentations, rather than focusing on the continuing challenges that are faced by Viacom,” the spokesman, Mike Lawrence, said in the statement.
In a later statement, Carl Folta, a Viacom spokesman, said that the company was “deeply troubled and saddened by this state of affairs.”In a later statement, Carl Folta, a Viacom spokesman, said that the company was “deeply troubled and saddened by this state of affairs.”
He outlined how Viacom directors addressed company issues, including the sale of a stake in Paramount, during 12 hours of meetings last week that Mr. Redstone attended by phone.He outlined how Viacom directors addressed company issues, including the sale of a stake in Paramount, during 12 hours of meetings last week that Mr. Redstone attended by phone.
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.
Mr. Dauman was unexpectedly dismissed from the trust and removed from the board of National Amusements on Friday. 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.Mr. Dauman was unexpectedly dismissed from the trust and removed from the board of National Amusements on Friday. 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. She 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. She has publicly opposed Mr. Dauman’s leadership of Viacom.
In addition to Mr. Jankowski, the other person expected to be appointed to the 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. Mr. Jankowski and Ms. Ostheimer also could not be reached for comment.In addition to Mr. Jankowski, the other person expected to be appointed to the 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. Mr. Jankowski and Ms. Ostheimer also could not be reached for comment.
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.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.
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, “I fully support my father’s decisions and respect his authority to make them.”
Mr. Dauman called the moves “invalid and illegal” and said Mr. Redstone had lacked the capacity to have taken such steps.Mr. Dauman called the moves “invalid and illegal” and said Mr. Redstone had lacked the capacity to have taken such steps.
Mr. Lawrence disputed that Viacom directors had been restricted from seeing Mr. Redstone. In his statement on Sunday, he detailed how Mr. Redstone sent a letter through a lawyer to Mr. Dauman, Mr. Abrams and Frederic Salerno, another Viacom director, on May 16 to ask for details about Viacom’s business and share price, which has declined 40 percent over the past year, but received no response.Mr. Lawrence disputed that Viacom directors had been restricted from seeing Mr. Redstone. In his statement on Sunday, he detailed how Mr. Redstone sent a letter through a lawyer to Mr. Dauman, Mr. Abrams and Frederic Salerno, another Viacom director, on May 16 to ask for details about Viacom’s business and share price, which has declined 40 percent over the past year, but received no response.
Mr. Folta, the Viacom spokesman, said that two directors have “still been unable to meet with Mr. Redstone.”Mr. Folta, the Viacom spokesman, said that two directors have “still been unable to meet with Mr. Redstone.”
“The Sumner Redstone we knew would never refuse a meeting about his businesses and he certainly would not want advisers to stand in for him,” Mr. Folta said.“The Sumner Redstone we knew would never refuse a meeting about his businesses and he certainly would not want advisers to stand in for him,” Mr. Folta said.
Mr. Lawrence attested to Mr. Redstone’s vitality. He said that over the past several days Mr. Redstone had hosted family and friends at his home and also met with lawyers and an executive from National Amusements. Mr. Redstone was also “looking forward to celebrating his birthday with family later this week,” Mr. Lawrence said.Mr. Lawrence attested to Mr. Redstone’s vitality. He said that over the past several days Mr. Redstone had hosted family and friends at his home and also met with lawyers and an executive from National Amusements. Mr. Redstone was also “looking forward to celebrating his birthday with family later this week,” Mr. Lawrence said.