Report: Sumner Redstone Nixes Daughter as Heir-Apparent

NEW YORK, July 10: Sumner Redstone, the executive chairman
of Viacom and CBS Corporation, has reportedly said that his daughter Shari
Redstone is no longer the heir-apparent to take over the family media empire,
according to The New York
Times.

The Times received an
advance copy of the transcript of an interview with Sumner Redstone that is
slated to air on CNBC tonight during Business Nation. When asked by the show’s moderator, David Faber, if
his daughter will succeed him at the two media conglomerates, he reportedly
replied: “No,” adding, “The reason she won’t succeed me is not…—that she
isn’t qualified.” Shari Redstone is vice chairman of CBS Corp. and Viacom,
serving on both boards. She is also currently the president of National
Amusements, the family-owned movie theater company.

According to the Times, Redstone said that for CBS Corp. and Viacom, two
publicly listed companies, “the boards should decide who succeeds me. I’m not
worried about it ’cause it’s going to be another 20, 30 years,” said Redstone,
who is 85.

In the interview, Redstone noted that a deal has been
reached to buy out his daughter’s stakes in CBS Corp. and Viacom, in exchange
for control of National Amusements. Shari Redstone owns 20 percent of National
Amusements, with the balance owned by her father. National Amusements controls
79 percent of the vote in Viacom, and 76 percent of the vote in CBS. National
owns 11 percent of the equity of each media company. With the buyout deal,
Shari Redstone would leave the boards of both CBS and Viacom.

Shari Redstone’s spokeswoman, Nancy Sterling, has said that
no final agreement has been signed, according to wire reports, but has
confirmed that negotiations are under way.

—By Mansha Daswani