AS THE controller of nearly three quarters of Viacom’s Class A voting stock, Sumner Redstone hardly needs to consolidate his power.
Yet it may be that even he is feeling slightly fragile after drawing widespread criticism — as well as some support — for his decision to drop the film star Tom Cruise from Paramount Pictures without consulting his army of lieutenants.
Either way, he has moved two long-term associates from board positions to day jobs in what some see as a step towards handing the Viacom reins to his daughter, Shari.
Philippe Dauman, who took over as Viacom’s chief executive yesterday, has worked with Mr Redstone, 83, for about 20 years and helped to engineer his takeover of the company in the 1980s.
Thomas Dooley, who held various corporate positions at Viacom between 1980 and 2000 and rejoined the board this year, has also advised Mr Redstone for many years.
Advertisement
Aryeh Bourkoff, an analyst at UBS, said: “These are Redstone guys and their appointment in place of Tom Freston looks like he is preparing to return the running of Viacom to his family.
“The two guys are moving from the board to running the company day to day, but we could well see them returning to the board when Shari is ready to take over.”
Mr Redstone would not be drawn yesterday on his plans for his daughter, who at present is vice-chairman of Viacom.