Media magnate and executive chairman of Viacom, Inc.VIAB , Sumner Murray Redstone, is expected to step down from his current position after he willingly resigned from the role of executive chairman of CBS Corporation CBS at the age 92. Deteriorating health was the prime reason behind his sudden retirement.
Speculation surrounding his resignation led Viacom's shares to skyrocket to $48.76 per share, up 9.16% in aftermarket trade. This also sent the shares of CBS Corp. soaring, which gained 4.12% during aftermarket trade.
The move follows months of speculation surrounding Redstone's mental health. Meanwhile, CEO Leslie Moonves has succeeded Redstone as the executive chairman of CBS Corp.
As it has been made clear by Shari Redstone, the vice-chairman as well as the daughter of Sumner Redstone, that whoever is related with her father's trust will not be allowed to take up his position in the company. Thus, it won't be easy for Viacom's CEO as well director of the Redstone trust, Philippe Dauman, to step into Redstone's shoes.
Meanwhile, Viacom is scheduled to release first-quarter 2016 results on Feb 2, while CBS Corp. is slated to report fourth-quarter 2015 results on Feb 11.
Zacks Rank & Stocks to Consider
Viacom currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in this related sector include AMC Networks Inc. AMCX and MSG Networks Inc. MSGN . Both sport a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
