Viacom to Split into Two Companies, Shari Redstone to Take Senior Role

Shari Redstone, daughter of Sumner Redstone, is expected to be appointed vice-chairman of Viacom at a board meeting next week, as the media conglomerate prepares to split into two companies. The move will give Viacom's cable division an estimated $20 billion for acquisitions, according to analysts' estimates. Shari Redstone will hold a more senior position than Tom Freston and Leslie Moonves, the heads of MTV and CBS respectively, and will eventually inherit the company from her father.

Key Takeaways:

• Shari Redstone, 50, is expected to be appointed vice-chairman of Viacom at a board meeting next week.
• The move is part of the media conglomerate's plan to split into two distinct companies.
• Shari Redstone will hold a more senior position than Tom Freston and Leslie Moonves, the heads of MTV and CBS respectively.
• The Viacom board is expected to vote on the split at the meeting.
• Shari Redstone's appointment is seen as a step towards her eventual inheritance of the company from her father, Sumner Redstone.
• The media conglomerate's cable division will receive an estimated $20 billion for acquisitions as part of the break-up plan.
• Sumner Redstone will remain chairman and controlling shareholder of both separate companies.

Statistics:

• Estimated value of acquisitions for Viacom's cable division: $20 billion (Pounds 11 billion)
• Age of Shari Redstone: 50
• Number of companies planned to split from Viacom: 2
• Estimated time frame for decision on break-up plan: before the end of this month

Sources:

• The Times, 2005
• Viacom's announcement of possible break-up into two companies