Sumner Redstone, the 92-year old media mogul, has recently resigned from his position at CBS. Replacing him as Executive Chairman of the US TV network is Leslie Moonves, who formerly served as the company's CEO.
In the past few months, the former chairman of CBS has been suffering from health problems. He stepped down early this week but will continue to serve the network as chairman emeritus.
Redstone's daughter, Shari Redstone, will remain as the network's vice-chairman. She held this position at CBS since 2005.
A report came out describing Redstone's exit from his media empire as some sort of a Greek drama, with the attendant power moves, high stakes and C-suite bloodlettings.
It involved Redstone's failing health, the stand of her daughter, Shari, not to let Philippe Dauman, CBS CEO, to take the position as Viacom chairman. A report from LA Times said that Shari, who is tapped to head both companies, refused to accept the positions.
"It is my firm belief that whoever may succeed my father as chair at each company should be someone who is not a trustee of my father's trust or otherwise intertwined in Redstone family matters, but rather a leader with an independent voice," said Shari Redstone, in a statement.
The former executive chairman built Viacom from an insignificant Boston theater chain into a worldwide media powerhouse. Unfortunately just like his failing health, his empire started to crumble.
Investors are now hoping that with the change at CBS, Viacom will also see a change in its management.
"Investors want the option of change, as well as the prospect of a sale of some or all of the business, and don't believe they have it with Viacom given the intersecting shareholder control-board governance-management structure of the company," Brian Wieser said, a Pivotal Research analyst said.