Sumner Redstone to step down from Viacom board

Viacom stock has fallen 13 percent in 2016.
By Ed Adamczyk  |  Dec. 16, 2016 at 11:33 AM
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NEW YORK, Dec. 16 (UPI) -- Sumner Redstone, Viacom Inc. chairman emeritus, will be a non-voting board member beginning in February, the company announced Friday.

The announcement comes after Redstone, 93, and his daughter Shari Redstone ended attempts to merge Viacom and CBS Corp. The Redstone family's American Amusements Inc. holds an 80 percent stake in both media companies, and the end of merger plans will give new Viacom CEO Bob Bakish an opportunity to turn the company around, the Wall Street Journal said Friday. Bakish joined Viacom's board of directors in Dec. 12.

Redstone obtained emeritus status after shareholders raised concerns regarding his reported failing health and mental capacity. There was a power struggle which resulted in the ouster of former CEO Philippe Dauman and the rising standing of Shari Redstone. Viacom stock has fallen 13 percent in 2016.

The elder Redstone will be welcome to "continue to participate in board meetings in a non-voting role," a Viacom Securities and Exchange commission filing said.

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