Viacom/Sumner Redstone

[Mark <bostonradio@yahoo.com>]

On Sun, 03 Feb 2002 16:58:44  
 Ron Bello wrote:
>
>"National Amusements is a closely held
> corporation" and controls a large
>portion of Viacom (VIA - NYSE) stock.  IIRC Summer 
>Redstone controls 63% of Viacom.  So the real head 
>office is Summer's.

True. Sumner actually controls 68% *voting* shares at Viacom,
not the company itself, which means he can be the boss of the
company forever if he wishes. The Viacom's ownership structure is 
somewhat complicated, but basically former CBS corporate heads
like Karmazin own about 55% of all the Viacom's 
shares. Karmazin had actually unloaded about 15% of company's
shares last August still leaving him with nearly 4million
shares(50% of which he can not touch since they are
owned by his ex-wife :). 

Sumner will never be able to fire Karmazin. He doesn't have
that much pull with the board members.  The 18-member
board needs 14 votes to dismiss Mel. There are 8  members who 
came over from CBS/Infinity(Sumner wanted 10-8 board split when CBS
and Viacom merged in '99). Even by some chance all 10 Viacom
board members were going to vote to oust Mel,
there's absolutely no chance that 4 out of 8 CBS members would 
ever be in favor to remove Karmazin.

Karmazin could also quit before his deal runs out in 12/03
but that scenario spells even more troubled picture for
Viacom shareholders than the current Mel-Sumner feud over
how to run the company.

-Mark

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