Redstone fires fresh volley in legal battle for control of CBS
Shari Redstone, CBS Corp.’s main shareholder, moved Tuesday to quell a rebellion at the media company, filing a lawsuit that accused the CBS board of directors of improperly trying to strip her of control.
The suit, filed in Delaware’s Court of Chancery by CBS’ parent company, National Amusements, came in response to a surprise legal offensive by Leslie Moonves, CBS’ chief executive, on May 14.
Lawyers for National Amusements argued in its suit that Redstone had not tried to undermine CBS or Moonves as she pressed the company to consider a merger with its corporate sibling, Viacom.
Although Moonves may at one point have been open to the possibility of exploring a reunification of the two companies, which were combined from 2000 to 2005, he has resisted the idea lately.
National Amusements — the entertainment company founded by Redstone’s father, the 95-yearold mogul Sumner Redstone — asked in its suit that the court rule on what took place during a meeting at CBS headquarters May 17. At the meeting, Moonves and his fellow CBS board members voted 11-3 to dilute the Redstone family’s voting share, which amounts to roughly 80 percent of the company.
National Amusements argued that CBS’ bid to shrink Shari Redstone’s influence over the company was “invalid” and a violation of its bylaws. The day before the meeting, Redstone amended the rules so that any vote required a “supermajority” of at least 90 percent.
It is now up to the Delaware court to interpret the meaning of the board’s vote.