Family Feud at Viacom, CBS

NEW YORK, July 20: Sumner Redstone, the executive chairman
of Viacom and CBS Corporation, is said to be feuding with his daughter Shari, the
non executive vice chair of both companies, sparking speculation that she will
leave the company.

Shari has been considered by many as the elder Redstone’s
likely successor. She served on the board of the former Viacom beginning in
1994, becoming vice chairman in June 2005. Press reports indicate that Sumner
has become estranged from his daughter in recent months. However, he downplayed
the tensions in an interview with The New
York Times. “I have no intention of
removing her from the board. I haven’t encouraged her to take a lesser role,
and I consider her a credible candidate to succeed me, but I believe the board
should pick my successor.”

According to Fortune,
Shari Redstone has argued with her father over compensation of senior
executives and over the configuration of the board. The strained relations
could result in Shari Redstone leaving the board, with her father acquiring her
stock in the two companies. In return, she would gain control of the National
Amusements movie theater chain.

The feud has raised questions about who will eventually
become the controlling shareholder of the two companies. Some reports indicate
that control may fall into the hands of Redstone’s wife, Paula.

This is not the first time news of a Redstone family spat
has made headlines; last year, Sumner settled a suit filed by his son Brent
that sought to dissolve the family trust so that he could buy out his interest.