Redstone Takes Family Feud Public

LOS ANGELES/NEW YORK, July 23: In a letter to Forbes magazine, Viacom and CBS Corporation’s executive
chairman, Sumner Redstone, criticized his daughter Shari, who serves as the
vice chair of both companies.

The elder Redstone sent the letter to the magazine on Friday
after it reported on a brewing spat between father and daughter, partly over
corporate governance issues. Shari is said to be keen to replace her father as
the chairman of both companies; Sumner, meanwhile, has said that the decision
must be made by the boards of directors of Viacom and CBS.

"While my daughter talks of good governance, she
apparently ignores the cardinal rule of good governance that the boards of the
two public companies, Viacom and CBS, should select my successor,"
Redstone wrote.

Redstone controls 80 percent of National Amusements, a
private company that owns voting control of both Viacom and CBS. The remaining
20 percent is owned by Shari. Reports indicate that Shari may sell her stake in
exchange for 100 percent control of National Amusement’s movie theater chain.

"If Shari desires to be bought out, I will consider
this as long as the price is acceptable," Sumner Redstone wrote in his
letter.

He concluded: "It must be remembered that I gave to my
children their stock; and it is I, with little or no contribution on their
part, who built these great media companies with the help of the boards of both
companies."

According to Forbes,
Shari Redstone's spokeswoman, Nancy Sterling, issued a statement noting: “It is
unfortunate that Sumner has chosen to publicize what Shari had hoped would
remain a private family matter." Sterling’s statement added: "Until
recently Sumner touted Shari's achievements at CBS and Viacom, praising her ‘major
role’ there and describing her as ‘great business woman’ with ‘no
weaknesses.’”



Sterling continued, “Shari has “no desire to be ‘bought
out’” of National Amusements. Nonetheless, “If Sumner wishes to settle matters
that way, Shari will consider a resolution that fairly reflects her 20 percent
ownership of National, which has been publicly valued at $8 billion. Shari
intends to continue to try to resolve this matter in a way that is fair to the
companies and their employees, and to future generations of Redstones.”

Meanwhile, Fortune
reported yesterday that Shari has suggested that her father has misused company
funds, echoing accusations by her brother Brent last year. Brent has since
settled his suit with the family.