Morningstar

CBS Declares War on Shari Redstone

We're maintaining our moat ratings and fair value estimates on both CBS and Viacom.

Securities In This Article
Paramount Global Class B
(PARA)

CBS is specifically accusing National Amusements of breaching its fiduciary duty due to the actions of Shari Redstone. The lawsuit alleges that Redstone "improperly interjected herself into negotiations" and "acted to undermine CBS's highly lauded and successful management team in a series of escalating attacks." The board also claims that Redstone told a potential buyer to not make an offer for CBS and did so without the approval of the board. News reports have speculated that Redstone would attempt to stack the board at CBS with independent directors aligned with her views if the merger did not occur. Recent board appointee Richard Parsons, the former CEO of Time Warner, was the third independent director elected in the past year who is viewed as being an ally of Redstone.

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About the Author

Neil Macker, CFA

Senior Equity Analyst
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Neil Macker, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers media/entertainment and video game publishers.

Before joining Morningstar in 2014, Macker was a senior equity research associate for FBR & Co., where he covered the telecommunications services sector. Previously, he was an associate equity analyst for R.W. Baird and completed the summer associate rotational program at UBS Investment Bank. Before attending business school, Macker held analytical roles at Corporate Executive Board and Nextel.

Macker holds a bachelor’s degree from Carleton College, where he graduated cum laude, and a master’s degree in business administration from The Wharton School of the University of Pennsylvania. He also holds the Chartered Financial Analyst® designation.

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