Leslie Moonves Replaces Sumner Redstone As CBS Executive Chairman

In a research note late Wednesday, Harrigan had said about calls for major personnel changes: “Redstone has not been involved in day to day management, [at Viacom] and although investors have high regard for Moonves’ creative/programming flair; behavioral issues for millennials favoring short-form programming (YouTube, Vice, etc.) would not be resolved with an executive change”.

The transition at Viacom – the owner of MTV, Nickelodeon, BET, Comedy Central, and Paramount Pictures – had an added layer of intrigue because of Shari Redstone’s role.

Dauman is one of seven trustees that will control almost 80 per cent of the voting stakes at both CBS and Viacom after 92-year-old Redstone dies.

In January, Viacom said it cut the compensation of its top two executives, Executive Chairman Redstone and CEO Dauman, as the company faced business pressures and a sharp drop in its share price.

But unlike at CBS, where longtime CBS executive Leslie Moonves took over with widespread support, the Viacom transition already has hit a bump, revealing a rift in Redstone’s sprawling media empire – which he built over 50 years from a small chain of movie theaters into a conglomerate worth $40 billion.

“We are disappointed with the company’s decision to appoint Philippe Dauman as executive chairman”.

Dauman, the CEO of Viacom, was elevated to chairman in a board of directors vote on Thursday morning. Shari Redstone and her son Tyler Korff are also trustees along with several other lawyers close to the family.

Shari Redstone, who had opposed Dauman’s promotion, said in a statement Thursday she “is going to continue to advocate for what she believes to be in the best interests of Viacom shareholders”.

Sumner Redstone had no comment on any of the maneuverings. February 4, 2016 -The Board of Directors of Viacom Inc.

Viacom stock was up about 2.8% at the time of the announcement.

That’s partly why activist funds like Springowl Asset Management have targeted Viacom. Dauman and Dooley are now empowered to make Redstone’s healthcare decisions in place of Herzer, a change she disputes.

His health has been a matter of much speculation in recent months.

His ex-girlfriend, who is also his former agent, has filed a lawsuit claiming he is a “living ghost” who requires round-the-clock nursing care.

Manuela Herzer described him as “vacant, expressionless and out of touch”.

Widely read media analyst Michael Nathanson called the Redstone news “change we can believe in”. She said he was basically unable to talk and “cannot walk or stand by himself”.

For CBS and Viacom, the more things change, the more they may stay the same.