Sumner Redstone created quite a stir last week, spewing vitriol against Tom Cruise, citing the star’s flaky behavior.
But in the wake of last week’s clash, Hollywood insiders and Wall Street pros are now whispering that it’s the Viacom chairman who’s off his rocker. “Throughout his career, Sumner has shown himself to be consistently erratic,” said one media CEO whose worked on deals with Redstone. “He’s certainly brilliant, but he’s also done weird things like this.”
Said another source who has worked closely with Redstone, “He’s 83 years old and feeling a little lonely because he’s not out in front like he used to be. Sumner can’t stand fading away; he’d much rather go out blazing.”
Viacom board member Phillippe Dauman, CEO of DND Capital Partners, disputes that notion.
“Sumner cares passionately about the success of his businesses,” Dauman said. “His comments show a deep understanding of the industry and what he believes needs to be done to better serve audiences.”
So stunning were Redstone’s comments about Cruise’s behavior, however, that they’ve had the unintended effect of shining a spotlight on his own antagonistic persona.
And while those in the octogenarian’s camp, like board member Allen “Ace” Greenberg, claim “Sumner wouldn’t be Sumner if he didn’t speak his mind,” sources said that under the current circumstances, that smacks of excuse rather than rationale.
Underlining Redstone’s self-indulgent defiance, the day after his comments broke, rather than downplaying them, “He appeared jubilant,” a source close to Paramount noted.
To be sure, cutting Cruise may indeed have been sound business. But the manner in which he was dispatched undermines not only the credibility of that argument, but also has the potential to damage both Paramount and Viacom’s long-term business relationships.
“Paramount wanted to end the relationship with Cruise, but not like this,” said the source close to the studio. “They wanted to end it amicably so both parties could walk away with some dignity.”
Even Viacom spokesman Carl Folta concedes that, while Paramount boss Brad Grey, Viacom CEO Tom Freston and Redstone were all on the same page, “Perhaps [Paramount] would have handled it differently. Sumner says things in his own way. Brad has to live in that world; Sumner doesn’t.”
The irony of the flare-up is that, though Redstone claims the decision was pure business, Paramount itself is an asset that has an extremely emotional hold on Redstone.
Redstone began his career in the movie theater business, and he engaged in a bitter bidding war with Barry Diller to gain control of Paramount in 1992 – coincidentally the same year Cruise and producing partner Paula Wagner took up residence on the studio’s lot.
“Paramount does hold a special place for Sumner,” Folta said. “He’s emotional about it, but not in terms of being angry at Tom [Cruise], but rather in wanting to see Paramount do well.”