Fight Over Viacom Control Ends As Granddaughter Backs Off

Economy Jamie Simon
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The fight over the Viacom $40 billion media empire which has lasted over a month and has led to a huge disagreement between old friends and family members may eventually be at its end. On Friday, billionaire Sumner Redstone’s granddaughter accepted her grandfather’s choice to settle lawsuits involving Viacom’s Chief Executive Officer Philippe Dauman’s removal, hence eliminating a major stumbling block to a resolution. Redstone will in return meet with Keryn Redstone who has questioned his capabilities in a court battle in Massachusetts.

Dauman has stopped resisting the effort by Redstone to eliminate him from Viacom’s board and a trust arranged for the service of his grandchildren. This is part of the resolution agreement which also settled the conflict over other Viacom directors’ removal. As specified in his contract, Dauman after parting ways with Viacom will receive a severance package of $72 million. Viacom executives will now be able to concentrate on reinvigorating the struggling media giant after this settlement.

After series of arbitrations with her grandfather’s legal team, Keryn decided to stop opposing the settlement. Since May, Shari and her father Sumner Redstone had been struggling to oust Dauman from the trust and the company after the suit filed by Manuela Herzer was dismissed by a Los Angeles judge. Herzer who is a former friend of Sumner Redstone claimed that the daughter of the billionaire manipulated him. Board member George Abrams and Dauman were later removed from the trust leading to the legal battles.

Dauman succeeded his mentor as the chairman of the board and Viacom this year and it brought about a difficult situation as Redstone’s remaining pay was eliminated. Redstone who fought to secure Viacom’s Paramount movie studio 20 years ago became angry after Dauman decided to sell a stake in the studio.