CBS v the Redstones: Judge Questions Sumner’s Condition, Rules Against Deposition
Questions about the 95-year-old media mogul’s capacity to lead have circled CBS and Viacom for years
Trey Williams | August 8, 2018 @ 3:12 PM
Last Updated: August 8, 2018 @ 3:13 PM
Sumner Redstone and Les Moonves at Mann Bruin Theatre on October 1, 2012 in Westwood, California.
A Delaware judge on Wednesday said that he had “great skepticism” about the mental condition of CBS chairman emeritus Sumner Redstone and ruled against having him deposed in an ongoing court case, according to the Wall Street Journal.
Even so, Judge Andre Bouchard ruled against public release of a videotape of Redstone made by CBS director Arnold Kopelson last January that the company has said shows the 95-year-old in poor mental and physical health.
Bouchard also ordered National Amusements Inc. — the Redstone family holding company that owns roughly 80 percent of CBS and Viacom and that has been in a pitched legal battle with CBS — is required to hand over documents that the media company suspects will help shine a light on who is calling the shots at NAI.
“We are very pleased with the court’s ruling today, which will now allow us to conduct appropriate discovery from NAI on the issue of who controls NAI, and will also give us a full opportunity to obtain highly relevant documents relating to NAI’s coup against the Viacom Board in 2016,” a CBS spokesperson said in a statement to TheWrap. “With respect to the videotape of Sumner that was submitted to the court under seal, we are pleased that the Court, while keeping the tape confidential, recognized today that the tape is relevant to the issues in this case.”
The video of Redstone is the latest turn in CBS and NAI’s otherwise openly tense battle for control of the media giant.
Last week, CBS accused Sumner’s daughter Shari Redstone in a court filing of threatening to have CBS board member Arnold Kopelson removed after he recorded a January visit with 95-year-old Sumner Redstone in order to “memorialize Mr. Redstone’s physical state,” according to the Wall Street Journal.
The existence of the video was revealed after there were questions as to whether Sumner Redstone would be deposed in the legal battle between NAI and the CBS board — he won’t be. CBS had asked that either the judge allow Sumner Redstone to testify or otherwise nullify testimony on his behalf in order to prevent NAI from offering “self-serving testimony” about his or NAI’s intentions, the Journal reported.
CBS said in that filing that the video shows that Sumner Redstone is “incapable of communicating his views on this case,” according to the Journal.
NAI, on the other hand, has questioned the legality of the recording — a question on which Brouchard has not yet ruled.
This latest squabble arises from the larger battle, in which the CBS board is pushing to dilute the 80 percent voting power NAI and Shari Redstone has in the company. CBS has accused NAI of shirking its fiduciary responsibility to shareholders by attempting to force a merger between CBS and Viacom. NAI has rebuked these claims on numerous occasions.
But CBS is challenging whether Shari Redstone or her father is in charge.
In a filing in May, CBS CEO Les Moonves expressed concern that control of NAI had “migrated” to Shari Redstone, ostensibly giving her control over CBS’ future.
A person close to NAI told the Journal that control never migrated to Shari Redstone, but that the NAI board has always had the power to vote the controlling CBS and Viacom stakes.
Sean Burch contributed to this reporting.
A Timeline of Sumner Redstone's Crazy Life in Pictures (Photos)
May 27, 1923: Sumner Murray Rothstein (later Redstone; pictured) is born in Boston, and the media world will never be the same.
1993: Redstone's Viacom acquires film studio Paramount Pictures.
This April, the aging figurehead publicly stated that he doesn't want to sell a minority stake in that company. The Viacom Board of Directors, on the other hand, is pushing for that to happen as early as end-of-June.
2000: Viacom and the so-called Tiffany Network, CBS, merge. It wouldn't last.
Just five years later, Viacom and CBS split, though the two publicly traded companies are still under the same umbrella -- Redstone's National Amusements, Inc. still controls 80 percent of both companies today.
2006: Shortly after the spinning off, Sumner began feuding publicly with daughter Shari (the pair pictured together here) over her role within the companies.
On September 5 of that year, Sumner Redstone taps legal counsel Philippe Dauman to lead Viacom. Shari Redstone and Dauman seemingly haven't gotten along since then, though she's apparently repaired the relationship with her ailing father.
October 2015: Sumner Redstone's longtime girlfriend Manuela Herzer (pictured) was booted as his healthcare proxy, losing her sizable inheritance in the process.
Dauman became Sumner Redstone's interim proxy, before Shari Redstone re-ingratiated herself and took the role over.
Herzer would sue in May 2016 to get back in the inner circle -- or at least reclaim her spot in Sumner Redstone's will -- but was denied by a judge. Sumner's mental competency was held up at the same hearing, though it wouldn't be the last time an adversary asks someone sitting on the bench to double-check that.
Jan 20, 2016: Activist investor SpringOwl calls for the Sumner Redstone (pictured, from 2012) to step down as Viacom and CBS chairman. The 92-year-old has had problems with his speech for years, and hasn't been able to so much as deliver a pre-written statement during quarterly investor calls.
February 2016: CBS President and CEO Leslie Moonves' replaces Sumner Redstone as the broadcast channel's chairman on the third of the month. Sumner Redstone takes on the title of "Chairman Emeritus."
A day later, Philippe Dauman (pictured, right, with Moonves, left, and Redstone, center) made the same exchange with Sumner Redstone at Viacom.
May 18, 2016: The Viacom Board of Directors votes to stop paying Sumner Redstone (pictured at LACMA), a perceived slap in the face by his legal counsel.
If you got a candid answer from someone at Viacom, however, they'd point out that the billionaire has plenty of money and does exactly zero work, so he's just fine. Plus, the company's been trying to cut costs where it can.
May 20, 2016: Sumner Redstone (pictured here with daughter Shari) removes Philippe Dauman and George Abrams as trustees in the Sumner M. Redstone Trust, and as board members of his family business, National Amusements, Inc.
This kicked off much public fighting between the two far-apart sides. The nastiest accusation came from Viacom and Dauman, who accused Shari Redstone of "manipulating" her father's signature.
They're not the only people who believe the daughter is pulling daddy's puppet-strings.
May 23, 2016: Philippe Dauman (pictured) and George Abrams (insert) sue in a Massachusetts court to overrule their oustings.
Across the country, Sumner Redstone's attorneys ask a Los Angeles Court to affirm his competency, which would affirm the removals of Dauman and Abrams.
May 24, 2016: Sumner Redstone (pictured) replaces Philippe Dauman and George Abrams with his granddaughter Kimberlee Ostheimer and a pair of family friends, Tad Jankowski and Jill Krutick.
August 18, 2016: Dauman is ousted from the company in a deal that also settles outstanding legal disputes. Robert Bakish is later named president and CEO of Viacom.
The CBS and Viacom chairman emeritus has survived a fire, family drama and more than his fair share of nonagenarian public humiliation — but he’s still got billions to show for it
May 27, 1923: Sumner Murray Rothstein (later Redstone; pictured) is born in Boston, and the media world will never be the same.