Sumner Redstone, Viacom Inc. (NYSE: VIA) Chairman, has reportedly forced his daughter Shari off its board. And Dealbook reports that with Shari gone, the chance of keeping Viacom in the family has evaporated.
Sumner Redstone, 84, is nothing if not a survivor. Back before he owned Viacom and CBS Corp. (NYSE: CBS), in 1979, he found himself in room 341 of Boston's Copley Plaza Hotel when the place caught fire. So Redstone climbed out on the ledge and held on with one arm while severe burns covered nearly half his body. The gnarled claw of that hand is a testament to his survival instincts.
But Redstone has also managed to alienate his family. He divorced his long-time wife Phyllis a few years ago -- she alleged he was fooling around with the much younger ex-wife of former hairdresser and now producer, John Peters. And his son Brett sued him arguing that Sumner and Shari forced Brett off the board of their privately-held movie theater chain, National Amusements. But the chance for keeping Viacom in the family looked good when he appointed his daughter Shari to the Viacom board.
I don't know why they had a falling out -- possibly disagreements over National Amusements about whether to spin-it off (Sumner) or invest further in it (Shari) -- but with Shari rumored to be on her way out, there are many media companies that would love to own Viacom. News Corp (NYSE: NWS), General Electric Co.'s (NYSE: GE) NBC Universal, The Walt Disney Company (NYSE: DIS) and Time Warner Inc. (NYSE: TWX), owner of this blog, all come to mind as possible suitors.
With Viacom up 3% on the news, let the bidding begin!
Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He owns General Electric stock, has consulted to News Corp.'s chairman, and has no financial interest in the other securities mentioned in this post.
