The Viacom chief executive Philippe Dauman has won a bitter battle to take control of the broadcaster following the resignation of Sumner Redstone, its 92-year-old billionaire founder.
Mr Dauman has been criticised by investors and Mr Redstone’s daughter, who publicly opposed his appointment as executive chairman yesterday.
Mr Redstone resigned as executive chairman at CBS, the other part of the family media empire, to become chairman emeritus; he will occupy the same role at Viacom, home to MTV, Comedy Central and a handful of other television and entertainment groups. Viacom met yesterday to decide on a successor, following the CBS decision on Wednesday.
Several shareholders have become more vocal in their criticism of the roles played by Mr Dauman and Mr Redstone at CBS and Vicaom. One investor is also attempting to sue the company, alleging that it misappropriated shareholder funds by paying Mr Redstone millions of dollars while simultaneously covering up his declining health.
Mr Redstone’s daughter, Shari, issued a statement yesterday urging Viacom to appoint an independent executive chairman, “not a trustee of my father’s trust or otherwise intertwined in Redstone family matters”. Mr Dauman is a trustee and has power over decisions regarding Mr Redstone’s health.
An activist investor, Spring-Owl Investment Management, publicly criticised the company’s leadership and has been advocating change. An overnight statement from SpringOwl reiterated its opposition to Mr Dauman.
The company said: “Spring-Owl has recently made a case for change at Viacom with the goal of increasing value for all shareholders, and the company has responded… We strongly urge management and the board to appoint an independent director as executive chairman and that it not be Philippe Dauman.”
