CBS sues controlling Redstone family in bid for independence

CBS sues controlling Redstone family in bid for independence

On Wednesday, the company will hold its 2018-2019 Upfront presentation in NY.

CBS is seeking to call a special board meeting on May 17 at which directors will consider declaring a dividend of shares of Class A common stock to all the company's Class A and Class B shareholders.

"National Amusements is outraged by the action taken by CBS and strongly refutes its characterization of recent events", Sara Evans, an outside spokeswoman for the Dedham, Massachusetts-based theater owner, said in an emailed statement.

"In a move that escalates an internal battle for control, CBS has filed a lawsuit in Delaware Chancery Court against Shari Redstone, Sumner Redstone and National Amusements, Inc., now the controlling stakeholder for CBS", The Hollywood Reporter's THR, Esq., reports.

Additionally, in the proposed deal, Les Moonves, chairman/CEO of CBS would run the combine company, with Joe Iannielo, CBS' COO, becoming the No. 2 executive - leaving out Bob Bakish, president/CEO of Viacom.

Daily chances for scattered storms this week
Temperatures soar today into the low 90s in many spots and we need to watch again for severe weather risks this evening. So, while it will not be raining all the time, there is no one day that will turn out sunny and dry anytime soon.

The lawsuit also claims that Ms. Redstone told the CEO of a potential acquirer of CBS that he should not make the offer, "thereby depriving CBS stockholders of a potentially value-enhancing opportunity", which the board or the special committee should have been free to evaluate.

"Ms. Redstone has acted to undermine the (CBS) management team, including, without board authority, talking to potential CEO replacements, deriding the chief operating officer and threatening to change the board", the lawsuit said. Analysts have said a merger would benefit Viacom more than the stronger CBS. "CBS's stock price has dropped from almost $70 per share to almost $50 per share since merger talks were reinstated-a loss of approximately $7 billion in market cap suffered by the Class B stockholders".

If the dividend is approved, National Amusements' voting rights in CBS would shrink to about 17 percent from about 80 percent, more in line with National Amusements' economic stake in CBS of 10.3 percent, according to CBS's lawsuit, filed with the Court of Chancery in Delaware.

"Ensuring the long-term success of CBS continues to be NAI's sole interest".

The lawsuit said Shari Redstone could force a merger by replacing CBS board members.

Related Articles

  • Senate Dems demand answers from AT&T CEO about payments to Michael Cohen

    Senate Dems demand answers from AT&T CEO about payments to Michael Cohen

    Still, Stephenson emphasized that the company's dealings with Essential Consultants were all above board and perfectly legal. In this instance it is Donald Trump's attorney, Michael Cohen and the payments he received from corporations.
    Bet you can't guess who is selling this £615K Lamborghini for charity

    Bet you can't guess who is selling this £615K Lamborghini for charity

    A one-off Lamborghini Huracan that was donated to the Pope a year ago has raised more than £630,000 for charity. It passed the auction block on Saturday (12 May) and raised a staggering €715,000 for charitable causes.
    Poor People's Campaign launches days of protests around US

    Poor People's Campaign launches days of protests around US

    The Poor Individuals's Marketing campaign: A Nationwide Name for Ethical Revival mentioned in a press release Monday that the Rev. They wanted the Indiana Legislature, which was meeting in a one-day special session, to make more changes to help those people.
  • Kristen Stewart Defies Cannes' Strict Red Carpet Policy

    Kristen Stewart Defies Cannes' Strict Red Carpet Policy

    Stewart, a self-confessed fashion junkie, revealed that her thoughts are nothing against heels either. She did this while heading to the gala premiere for Spike Lee's BlacKkKlansman .
    NASA's next Mars rover mission to carry tiny helicopter

    NASA's next Mars rover mission to carry tiny helicopter

    Mars's atmosphere is so thin that hovering just 10 feet above the surface is the equivalent of soaring 100,000 feet above Earth. On its first flight, the helicopter will make a short vertical climb to 3 metres where it will hover for about 30 seconds.
    Mom Denies Abuse After 10 Kids Removed From California Home

    Mom Denies Abuse After 10 Kids Removed From California Home

    Neighbor Larry Magnaye said he had no idea there were 10 children living in the house across the street. "But absolutely not. She said at a news conference that "torture occurred in this house" and it was carried out "for sadistic purposes".
  • UCLA biologists 'transfer' a memory

    UCLA biologists 'transfer' a memory

    It was "as though we had transferred the memory", study co-author and UCLA professor David Glanzman said, the BBC reported . But scientists have been studying sea snails for a long time, and they know an terrible lot about how the organisms learn.

    Samsung to launch new Series A and J smartphones

    The Note 9 is also set to include the same stereo speakers used in the S9, which will also be an improvement from the Note 8. It could however make its introduction with the Galaxy S10 , allowing Samsung to forego the dedicated reader on the back.
    Will Smith Details How He Became the 'Fresh Prince of Bel-Air'

    Will Smith Details How He Became the 'Fresh Prince of Bel-Air'

    The actor said he did not pay his taxes and then had a flop when the rap duo released their second album. Will Smith was broke and owed millions in taxes when he auditioned for The Fresh Prince of Bel Air .
  • David Moyes: West Ham manager could be set to leave

    David Moyes: West Ham manager could be set to leave

    Confident? I can't quite say confident after all I'm reading in the paper. I don't think there is a long period (to settle in)". We've not arranged a date, not arranged a time.

    Pompeo and Bolton outline North Korea plans as talks approach

    North Korea would then become, a "nuclear power wrapped around paper called 'denuclearization, '" concluded Thae. Such an assurance is unlikely to be given by the nuclear-countries.
    Iran Upbeat About Oil Exports Despite Sanction Threat

    Iran Upbeat About Oil Exports Despite Sanction Threat

    Last week's speculative buying was initiated by President Trump's decision on Tuesday to walk away from the Iran nuclear deal. Several Asian refiners told Reuters that they were already on the lookout for alternatives to Iranian crude oil deliveries.