cc Tuesday, September 11, 2018 latimes.com/news

With Leslie Moonves out, Shari Redstone emerges winner in fight over control of CBS

By MEG JAMES TIMES STAFF WRITER For nearly a year, Shari Redstone has been locked in a battle for control of CBS Corp. — facing off against a powerful chief executive and other members of the board. So tense was the standoff that CBS went to court to pry loose the Redstones’ grip on the company. Armistice arrived Sunday. In one dramatic swoop, CBS announced the departure of longtime CEO Leslie Moonves amid a widening sexual harassment scandal, installed an act- ing CEO and announced six new members to its board. Gone were the old-timers, friends of Sumner Red- stone, who were some of Moonves’ CBS Vice Chair Shari Redstone, shown in 2016, succeeded in getting rid of her strongest allies. opponents on the CBS board. (Bryan Bedder / Getty Images) CBS, in a statement, touted its compromise with the Redstone fami- ly and the independence of its re- like he got run over by an 18- owns premium channel Showtime, a freshed 13-member board. The num- wheeler.” chain of television stations, including ber of women on the panel immedi- The retirement of long-serving KCBS-TV Channel 2 in Los Angeles, ately doubled to six. The average age board members and Moonves’ resig- TV production and film studios, and of board members now is 65, eight nation handed Redstone a major vic- book publisher Simon & Schuster. years younger than before. Not men- tory and could eventually strengthen National Amusements gave tioned in CBS’ statement was that her influence in shaping the future of ground too. Now it will have two, not Shari Redstone — the daughter of the the storied media company that her three, representatives on the CBS ailing media mogul from Boston — family controls. Several of Shari Red- board. And the company agreed not to was deeply involved in the group’s stone’s boardroom opponents have propose a merger between CBS and selection, according to two people been cleared from the field. Viacom Inc., the other media compa- familiar with the matter who were not As part of the truce, hammered out ny that the Redstone family controls authorized to comment. Sunday, CBS board members agreed — for at least two years. Acrimony “This may look like a compromise to drop their lawsuit against the Red- over Shari Redstone’s campaign for a resolution at first blush, but it's not,” stone family investment vehicle, Na- merger earlier this year fueled some Los Angeles investment banker tional Amusements Inc. The company of the board rancor and CBS’ legal Lloyd Greif said. “Shari won this retains nearly 80% control of the efforts to try to dilute the family’s round — big. Les Moonves must feel broadcasting company, which also control. In addition, 95-year-old Sumner tions that back the #MeToo move- former Moonves' coworker in the mid Redstone’s trust, which kicks in upon ment and women’s equality in the -1980s, at the now defunct Lorimar his death or incapacitation, was workplace. That money has already television studio, had filed a com- amended to remove a requirement that been deducted from Moonves’ sever- plaint with the Los Angeles Police the Redstones maintain at least a 30% ance package. Department. control of the business. That clears the CBS stock closed down 86 cents, Moonves said he was involved in way for other suitors to bid for CBS. or 1.5%, to $55.20 on Monday. This consensual relationships with several "It is true that Shari Redstone year, shares are down about 7% amid of the women and called the allega- came out as the winner in the corpo- the boardroom squabble and Moon- tions against him “untrue.” rate intrigue," said C. Kerry Fields, ves’ increasingly tenuous position. "The turning point was Mr. Moon- finance professor at the USC Marshall Redstone, 64, who serves as vice ves' vulnerability to the sexual harass- “Les Moonves must feel like he got run over by an 18-wheeler.”

—LLOYD GREIF, PRESIDENT & CEO OF GREIF & CO.

School of Business. "She wanted to chair of CBS, has long toiled in the ment claims,” Fields said. “He could- eliminate some of the outside board shadows of her larger-than-life father, n't survive an escalation of the allega- members, and the litigation will be Sumner Redstone. He would berate tions of sexual misconduct and con- dropped. But it is a subtle compro- her publicly — including a well- tinue to run the organization." mise." chronicled occasion, more than a dec- As part of the settlement, many of The agreement between CBS and ade ago, when he faxed a letter to CBS’ longest-serving directors, in- the Redstone family gives Wall Street Forbes magazine that openly dis- cluding Moonves, television producer — which has been largely opposed to missed her contributions to the family Leonard Goldberg, film producer Ar- a CBS-Viacom merger — some assur- enterprise. But in the last two years, nold Kopelson, music executive Doug ance that a marriage is off, at least for Shari Redstone has demonstrated her Morris, former banking executive now. mettle first by vanquishing her fa- Charles Gifford, former government “However, the hiatus certainly ther’s female companions and then official Joseph Califano and attorney does nothing to dispel the notion that clawing victories in two bruising David Andelman, retired from the the Redstones intend to recombine the boardroom battles, first at Viacom board. two companies, leaving the existing and now at CBS. "So far, the investors have clearly overhang on CBS shares,” Doug In 2016, she led the fight to oust won, and Shari Redstone and National Creutz, an analyst with Cowen & Co., Viacom’s longtime chief executive, Amusements have won,” said Jeffrey wrote in a Monday report. Philippe Dauman, and several long- Sonnenfeld, a professor at the Yale Shari Redstone, through a spokes- time members of Viacom's board. School of Management. “And the big woman, declined to comment. That also led to a settlement that was loser was Moonves and his cronies Moonves, 68, departed CBS with- strikingly similar to the weekend ac- who have largely exited the board." out an immediate severance package. cord with the CBS board. Joseph Ianniello, who until Sunday Board members wanted to wait until By last fall, Redstone was advocat- served as CBS’ chief operating of- the completion of a high-level investi- ing to reunite Viacom with CBS, but ficer, becomes president and acting gation into his alleged misconduct and the CBS board and its senior manage- chief executive while the search for a the workplace culture at CBS. Once ment resisted the idea. Redstone be- new leader proceeds. that review is complete, CBS board gan pressing for changes on the CBS “I am honored to have this respon- members will decide whether Moon- board. sibility, and I’m excited to take on a ves is entitled to receive any of the But soon, there were rumors that greater role,” Ianniello wrote in an benefits of his most recent contract. reporters were looking into allega- email to CBS staff Monday morning. In a regulatory filing, CBS said tions of sexual misconduct by Moon- “At the core of any company is its that it would deposit $120 million in a ves. In two articles in New Yorker culture. And never has it been more trust account. However, if investiga- magazine, 12 women came forward to important for us to make it abundantly tors find evidence that Moonves accuse the longtime TV executive of clear that CBS has a steadfast com- should be fired for cause, he may not aggressive sexual advances decades mitment to diversity, inclusion and a receive any severance. ago. safe and positive working environ- CBS also said that it and Moonves Some CBS board members be- ment.” will donate $20 million to organiza- came aware earlier this year that a