Viacom's Redstone in talks to buy out daughter
NEW YORK (Reuters) - Sumner Redstone is negotiating to buy out his daughter Shari's equity interest in Viacom Inc (VIAb.N) and CBS Corp (CBS.N), but the two sides have not reached a deal, his spokesperson said on Thursday.
The spokesperson also denied a CNBC online report that quoted the 85-year-old media mogul saying in an interview that his daughter was not qualified to succeed him.
For a long time, Shari Redstone had been expected to take the mantle from her father as chairman of Viacom and CBS, but their public dispute over corporate governance last year has left the issue of succession unclear.
The elder Redstone owns 80 percent of the family business National Amusements, which has controlling stakes in CBS and Viacom. His daughter owns the remaining 20 percent of National Amusements and also sits on the board of Viacom and CBS.
National Amusements also owns a 1,500-screen movie theater chain, which the younger Redstone runs.
"Mr. Redstone has always believed that good governance requires that the boards of Viacom and CBS should select his successor," the spokesperson said in an emailed statement.
"He loves his daughter and his family and in negotiating for her to acquire the theater circuit he is trying to accommodate her wishes. He continues to believe that his daughter has done a phenomenal job in running the theater circuit."
Cable news network CNBC asked Redstone in an interview broadcast earlier on Thursday whether his daughter will succeed him. Redstone replied "No."
CNBC.com reported that as part of a deal reached between the two, the elder Redstone would buy out his daughter's interest in CBS and Viacom and she would quit their boards.
The New York Times also reported the news, citing a transcript of the Redstone interview provided by CNBC.
CNBC subsequently corrected its online report. "An earlier version of this story incorrectly indicated above that Sumner felt his daughter was not qualified to succeed him and that a deal had been reached to buy out Sumner's daughter's interest in CBS and Viacom," CNBC said.
(Reporting by Kenneth Li and Tiffany Wu; editing by Phil Berlowitz)
