ENDLESS SUMNER

Viacom Battle Between Philippe Dauman and Sumner Redstone’s Daughter Takes An Ugly New Turn

The Viacom C.E.O. filed a claim in Massachusetts court after Sumner Redstone removed his close friend and protégé from his trust.
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Less than two weeks after a judge dismissed a case over Sumner Redstone’s mental competency, the 92-year-old billionaire media mogul once again finds himself in a whirlpool of drama, fending off questions about his state of mind and the motivations of people surrounding him.

The web of familial and corporate drama grew even more tangled over the weekend, beginning Friday, when Redstone unexpectedly dismissed Viacom chief executive and longtime friend Philippe Dauman from the trust that will control his majority stakes in Viacom and CBS through National Amusements when he dies or is declared unable to make decisions on his own accord. Redstone removed Dauman from National Amusements’s board, while Viacom director George Abrams also got the boot from both positions.

An attorney representing Redstone told The New York Times that his client’s decision came as a reaction to Viacom’s poor performance. But many speculate that this is yet another turn in the ceaseless tussle between Redstone’s close friend and protégé, Dauman, and his daughter, Shari, who once fell out with her father and is now serving as his health-care proxy. When Redstone stepped down as as chairman of CBS and Viacom earlier this year, Shari was the sole person to vote against Dauman’s ascension to fill his role. She serves as vice chairman of both companies, and with Dauman and Abrams now out, she and her son Tyler are two of the five members left in control of the trust.

By Saturday, Dauman was trying to spin Redstone’s decision to oust him as proof that he was not of sound mind, and that Shari was exercising undo influence. A spokeswoman for Viacom, which owns MTV, Paramount Pictures, and Comedy Central, told the Times that the move was “completely inconsistent with his long expressed wishes and intent, and extremely disruptive and damaging to Viacom and all of its shareholders.” She continued that Redstone had been influenced by Shari, who was aiming “to accomplish her long-held goal, which Mr. Redstone has always opposed, of gaining control of National Amusements and Viacom.”

On Sunday evening, Redstone released a statement attesting to his well-being. His representative said that Redstone is in good spirits, entertaining guests and looking forward to celebrating his 93rd birthday this week. “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,” a spokesperson told the Times.

By Monday, Dauman filed a complaint in the Commonwealth of Massachusetts Probate and Family Court challenging the changes.

“Shari Redstone is attempting to illegally hijack her father’s well-established estate plan by removing professional managers and reportedly installing her daughter, an employee and a friend who are firmly under her control,” Dauman said in the complaint, obtained by Deadline. “Her singular goal is to assume complete control of his businesses, despite Mr. Redstone’s long-term desire for a professionally managed Trust and an independent Board of Directors. Shari’s actions amount to an unlawful corporate takeover, and if effectuated, could have far-reaching consequences for thousands of shareholders and employees of Viacom.”

Earlier in the weekend, Shari had said she fully supported her father’s decisions and respected his authority to make them.