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| Viacom Chief Says Sumner Redstone Has Removed Him From Trust | Viacom Chief Says Sumner Redstone Has Removed Him From Trust |
| (about 4 hours later) | |
| The fight for control over Sumner M. Redstone’s $40 billion media empire escalated significantly on Friday night. | The fight for control over Sumner M. Redstone’s $40 billion media empire escalated significantly on Friday night. |
| In an unexpected development, Philippe P. Dauman, the chief executive of Viacom, was informed that Mr. Redstone had removed him and George Abrams from the trust that will control his companies after he dies or is declared incompetent. Mr. Abrams is a longtime director at Viacom. | In an unexpected development, Philippe P. Dauman, the chief executive of Viacom, was informed that Mr. Redstone had removed him and George Abrams from the trust that will control his companies after he dies or is declared incompetent. Mr. Abrams is a longtime director at Viacom. |
| Mr. Dauman and Mr. Abrams were also removed from the board of National Amusements, the private theater chain company through which Mr. Redstone, 92 and in frail health, controls his media empire. | Mr. Dauman and Mr. Abrams were also removed from the board of National Amusements, the private theater chain company through which Mr. Redstone, 92 and in frail health, controls his media empire. |
| Those moves, first reported by Fortune, were confirmed by a person briefed on them, who was not authorized to discuss them publicly. | Those moves, first reported by Fortune, were confirmed by a person briefed on them, who was not authorized to discuss them publicly. |
| In a statement, Mr. Dauman also referred to the moves, protesting that they were “shameful” and “illegal,” and asserting that Mr. Redstone was not capable of making the decision to remove him. | In a statement, Mr. Dauman also referred to the moves, protesting that they were “shameful” and “illegal,” and asserting that Mr. Redstone was not capable of making the decision to remove him. |
| Mr. Dauman formed a close bond with Mr. Redstone decades ago when he was a young corporate lawyer. Mr. Abrams, a Boston lawyer and longtime Viacom director, was seen as an ally of Mr. Dauman’s among the trust’s seven voting members. | Mr. Dauman formed a close bond with Mr. Redstone decades ago when he was a young corporate lawyer. Mr. Abrams, a Boston lawyer and longtime Viacom director, was seen as an ally of Mr. Dauman’s among the trust’s seven voting members. |
| The trust wields enormous power over the future of Viacom and CBS. Similar to an activist shareholder, it could vote to maintain the status quo at the two companies but also could oust their leadership teams or sell the companies. | The trust wields enormous power over the future of Viacom and CBS. Similar to an activist shareholder, it could vote to maintain the status quo at the two companies but also could oust their leadership teams or sell the companies. |
| The development puts in jeopardy Mr. Dauman’s position as chief executive of Viacom and is viewed as a major coup by Shari E. Redstone, Mr. Redstone’s daughter, who is the vice chairwoman of Viacom and CBS as well as a member of the trust. Long ostracized by her father, Ms. Redstone has said recently that the two have patched up their relationship. | The development puts in jeopardy Mr. Dauman’s position as chief executive of Viacom and is viewed as a major coup by Shari E. Redstone, Mr. Redstone’s daughter, who is the vice chairwoman of Viacom and CBS as well as a member of the trust. Long ostracized by her father, Ms. Redstone has said recently that the two have patched up their relationship. |
| Ms. Redstone does not to see eye-to-eye with Mr. Dauman or approve of his stewardship of Viacom, which has suffered a 40 percent plunge in the stock price in the last year. In February, Ms. Redstone voted against Mr. Dauman’s ascent to the chairman position of Viacom. | Ms. Redstone does not to see eye-to-eye with Mr. Dauman or approve of his stewardship of Viacom, which has suffered a 40 percent plunge in the stock price in the last year. In February, Ms. Redstone voted against Mr. Dauman’s ascent to the chairman position of Viacom. |
| Shortly after news of Mr. Redstone’s decision emerged, Mr. Dauman fought back with a statement of his own calling the moves “invalid and illegal.” | Shortly after news of Mr. Redstone’s decision emerged, Mr. Dauman fought back with a statement of his own calling the moves “invalid and illegal.” |
| “They are a shameful effort by Shari Redstone to seize control by unlawfully using her ailing father Sumner Redstone’s name and signature,” Lex Suvanto, a spokesman for Mr. Dauman, said in a statement. | “They are a shameful effort by Shari Redstone to seize control by unlawfully using her ailing father Sumner Redstone’s name and signature,” Lex Suvanto, a spokesman for Mr. Dauman, said in a statement. |
| “As she knows, and as court proceedings and other facts have demonstrated, Sumner Redstone now lacks the capacity to have taken these steps,” Mr. Suvanto added. “Sumner Redstone would never have summarily dismissed Philippe Dauman and George Abrams, his trusted friends and advisers for decades.” | “As she knows, and as court proceedings and other facts have demonstrated, Sumner Redstone now lacks the capacity to have taken these steps,” Mr. Suvanto added. “Sumner Redstone would never have summarily dismissed Philippe Dauman and George Abrams, his trusted friends and advisers for decades.” |
| Representatives for Mr. Redstone and Ms. Redstone could not be reached for comment. The law firm representing Mr. Redstone also could not be reached for comment. | Representatives for Mr. Redstone and Ms. Redstone could not be reached for comment. The law firm representing Mr. Redstone also could not be reached for comment. |
| It is not clear how Mr. Dauman and Mr. Abrams will respond, but the next stage of the battle is likely to involve a renewed fight over the competency of Mr. Redstone. | It is not clear how Mr. Dauman and Mr. Abrams will respond, but the next stage of the battle is likely to involve a renewed fight over the competency of Mr. Redstone. |
| The development comes a little more than a week after a trial over his mental competency was dismissed in a California court. The judge overseeing the case sided with Mr. Redstone, but made clear that he had not made a decision about whether or not Mr. Redstone was mentally competent. The judge said that a videotaped testimony of the media mogul showed that it was “not in dispute that Redstone suffers from either mild or moderate dementia.” | The development comes a little more than a week after a trial over his mental competency was dismissed in a California court. The judge overseeing the case sided with Mr. Redstone, but made clear that he had not made a decision about whether or not Mr. Redstone was mentally competent. The judge said that a videotaped testimony of the media mogul showed that it was “not in dispute that Redstone suffers from either mild or moderate dementia.” |
| As part of that trial, Mr. Dauman submitted a declaration that Mr. Redstone was “engaged and attentive” during meetings last fall. | As part of that trial, Mr. Dauman submitted a declaration that Mr. Redstone was “engaged and attentive” during meetings last fall. |
| Earlier this week, the board of Viacom moved to stop paying Mr. Redstone following the dismissal of the suit, a monthslong salacious legal battle that included embarrassing details about Mr. Redstone. Mr. Redstone has suffered minor strokes and has a severe speech impediment. | |
| It is not clear whether other people were named to replace Mr. Dauman and Mr. Abrams on the trust. | It is not clear whether other people were named to replace Mr. Dauman and Mr. Abrams on the trust. |
| Other trustees include Ms. Redstone’s adult son Tyler Korff and Leonard L. Lewin, the divorce lawyer for Shari’s mother, Mr. Redstone’s wife of 52 years. Also on the trust are David R. Andelman, a CBS director, and Norman I. Jacobs, a lawyer who has represented Mr. Redstone. | Other trustees include Ms. Redstone’s adult son Tyler Korff and Leonard L. Lewin, the divorce lawyer for Shari’s mother, Mr. Redstone’s wife of 52 years. Also on the trust are David R. Andelman, a CBS director, and Norman I. Jacobs, a lawyer who has represented Mr. Redstone. |