US media mogul Redstone removes Viacom chief from trust
Media mogul Sumner Redstone has ousted the head of Viacom and another top executive from the trust that manages his business interests, putting his daughter in position to take control of his $40 billion empire, a source close to the matter told AFP on Saturday.
Redstone, 92, is the controlling shareholder of Viacom and CBS and his failing health in recent months has set off a power struggle between his family and associates.
Philippe Dauman, chairman and CEO of MTV and Paramount Pictures parent company Viacom, received word in the middle of the week that he would be removed as a member of the National Amusements Inc Trust, the source said, confirming news reports and speaking on condition of anonymity due to the sensitivity of the matter.
George Abrams, a member of the Viacom board who is close to Dauman, was also removed from the trust, the source said.
The seven-member trust is meant to manage Redstone's empire in the event of his death or legal incapacity, and would have enormous power and influence over the future of Viacom and CBS.
The latest development was seen as a victory for Shari Redstone, Sumner Redstone's daughter, who is a member of the trust and vice president of both the CBS Board of Directors and Viacom.
Shari Redstone had openly opposed Dauman's appointment as chief of Viacom after her father stepped down.
After the exits of Dauman and Abrams, Shari Redstone can count on the support of remaining members of the trust who include her son Tyler Korff, and others with links to the family.
Dauman has called his ouster "shameful" and "illegal," according to news reports.
"The picture is quite clear, Mr. Redstone is being manipulated and used by his daughter in an attempt to accomplish her long-held goal, which Mr. Redstone has always opposed, of gaining control of National Amusements and Viacom," a Viacom spokesman said in a statement provided Saturday to AFP, one day after Dauman and Abrams' removals were made official.
"The actions taken yesterday in Sumner Redstone?s name are completely inconsistent with his long expressed wishes and intent and extremely disruptive and damaging to Viacom and all its shareholders," the statement said.
CBS did not immediately respond to a request for comment.
Media reports said Sumner Redstone was free to change or replace the members of his trust.