Sumner Redstone has ousted Viacom CEO Philippe Dauman and “Dauman's presumed ally,” Viacom director George Abrams, as trustees of the entity that will have voting control of Viacom and CBS upon Redstone's death or incapacity,
Fortune
reported.
In addition to removing Dauman and Abrams as trustees of the irrevocable trust, Redstone removed them as directors of National Amusements, the private holding company that holds his 80% voting stake in Viacom and CBS, the
Fortune
report said. “Removal will virtually assure majority control by his once-estranged daughter, Shari,” the article said. “She, along with her son Tyler [Korff], and her mother's divorce attorney are already among the seven members of the trust. Dauman and Abrams presumably would be replaced with Shari Redstone partsons.”
Redstone's daughter, Shari Redstone, is vice chair of both companies, the
Fortune
report noted. She cast the sole vote opposing Dauman's promotion to chairmanship of Viacom, the article said.
A spokesman for Dauman called the move “a shameful effort by Shari Redstone to seize control, the
Fortune
article said.
According to a Reuters report
one day after the announcement of Dauman and Abrams' removal from the trust, Viacom's board members said Shari Redstone was blocking access to her father. A spokesman Sumner Redstone later released a statement disputing the claim that Viacom directors were being denied access to him,
a
New York Times
article said.
“People familiar with the matter expect the dismissals to be contested in court in coming days,”
a
Wall Street Journal
article said.
(Sources:
Fortune
, May 20, 2018; Reuters, May 21, 2016;
New York Times,
May 22, 2016;
Wall Street Journal
, May 23, 2016.)
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