Sumner Redstone, the multi-billion dollar owner of National Amusements, CBS and Viacom brands such as MTV, BET, VH1 and Comedy Central, has reportedly died. He passed away at the age of 97 on Tuesday, according to National Amusements representatives.
“Sumner Redstone was a brilliant visionary, operator and dealmaker, who single-handedly transformed a family-owned drive-in theater company into a global media portfolio,” ViacomCBS CEO Bob Bakish said in a statement Wednesday. “He was a force of nature and fierce competitor, who leaves behind a profound legacy in both business and philanthropy. ViacomCBS will remember Sumner for his unparalleled passion to win, his endless intellectual curiosity, and his complete dedication to the company. We extend our deepest sympathies to the Redstone family today.”
His daughter is currently running the $3 billion empire, which has undergone a merger between Viacom and CBS.
“My father led an extraordinary life that not only shaped entertainment as we know it today, but created an incredible family legacy,” Shari Redstone, Sumner’s daughter said in a statement on Wednesday. “Through it all, we shared a great love for one another and he was a wonderful father, grandfather and great-grandfather. I am so proud to be his daughter and I will miss him always.”
Redstone’s health had been in question for years after he stepped away from his post as executive chairman of CBS and Viacom in 2016.
Les Moonves would replace Redstone at CBS, while Redstone’s longtime attorney Philippe Dauman would takeover Viacom.
Discussion of a merger of the two companies began in 2018 after a struggling Viacom saw its value decrease due to the underperforming Paramount Pictures. The once top five major studio, which in the past had been a haven of record-breaking films such as Titanic, 8 Mile and the Transformers franchise, had seen several leadership changes and carried the financial burden of box office failing films.
With Redstone’s passing, the 80 percent of ViacomCBS owned by his National Amusements will be transferred to a trust consisting of seven people, including his once estranged daughter Shari.
In the meantime, there’s been speculation that the media conglomerate will be sold, something that Redstone swore never to do. However, as the entity competes with the likes of Disney and NBCUniversal/Comcast, it’s finding itself at the lower end of the spectrum with a recent 12 percent decrease in revenue year over year.
However, the company has seen positive movement in the streaming world, gaining a revenue increase of 25 percent from its Pluto TV.
“We continue to believe the market is assigning immaterial value to VIAC’s streaming and digital business, with upcoming product enhancements and launches potential positive catalysts,” Goldman Sachs said.
