Only two weeks after Sumner Redstone successfully defended himself against one attempt to declare him incompetent to handle his own affairs another battle over the same issue has begun.
The effort by Sumner Redstone's ex-girlfriend to have the media mogul declared unfit to handle his own affairs ended abruptly when a judge dismissed the case. That case was always something of a sideshow. If the ex-girlfriend would have won her case, she would have eventually inherited a fortune, but the real story is what will happen to control of Viacom and CBS when Redstone passes away.
Redstone has majority control over both companies through his theater chain, National Amusements.
The New York Times reports that the Viacom CEO and the Board of Directors are now also calling Redstone's competency into question in "New Questions Arise Over Sumner Redstone's Competency After He Alters Trust."
The issue arose when Redstone removed Philippe Dauman, Viacom's CEO, from the trust that will control Redstone's businesses if he is declared incompetent or passes away. Dauman and the board claim the move was made after undue influence by Redstone's daughter as she is trying to gain control of the companies for herself.
A lawyer who works for Redstone claims the move was made because Redstone is dissatisfied with Viacom's performance.
As for the challenge presented by Redstone's ex-girlfriend? It was expected to be public and bitter. This challenge, however, presents much more important questions about the future of Viacom and CBS than the last one.
Reference: New York Times (May 21, 2016) "New Questions Arise Over Sumner Redstone's Competency After He Alters Trust."
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