Father-daughter rift rattles Viacom

Sumner and Shari Redstone are said to be seriously at odds, with her departure from the Viacom and CBS boards possible.

By Thomas S. Mulligan and Claudia Eller
Times Staff Writers

1:35 PM PDT, July 19, 2007

NEW YORK — A serious clash has developed between Viacom Inc. Chairman Sumner Redstone and his daughter, Shari Redstone, that could further cloud the succession picture at the family-controlled media and entertainment empire, which includes CBS Inc. and Viacom's MTV Networks and Paramount Pictures movie studio.

Lawyers for the 84-year-old mogul and his daughter are in negotiations that could lead to her leaving the Viacom and CBS boards and selling back her CBS and Viacom stock, although various other scenarios also are under discussion, sources familiar with the situation said today.

One option being considered is for Shari Redstone to buy out her father's stake in National Amusements Inc., the family-owned theater chain of which she is president, the sources said.

The negotiations, which have been underway for months, were disclosed today on Fortune magazine's website. Neither Redstone was available for comment.

Nancy Sterling, spokeswoman for Shari Redstone, said, "Shari remains an active and involved member of both the CBS and Viacom boards and has no intentions of resigning, nor has anyone asked her to resign."

If Shari Redstone is separated from the family business, she will join her brother, Brent Redstone, on the sidelines. Sumner Redstone bought out his son's stake this year to settle a lawsuit brought by him.

The father-daughter clash, according to the sources, was rooted in Shari's efforts -- as newly appointed nonexecutive vice chairman of Viacom -- to configure the two boards of directors created when CBS was spun off from Viacom in 2006.