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Shari Redstone's victory at CBS is very similar to his ousting of the top executive and most board members of
Viacom
,
VIAB 2.60%
that she also controls. These parallels are useful for thinking about what to expect now at CBS. Viacom is today a better managed company, with a clearer strategy for the future.
In 2016, Philippe Dauman, then CEO of Viacom, settled a dispute with Mrs. Redstone's National Amusements, putting an end to a power struggle within the company. Mr. Dauman resigned and his chief operating officer, Tom Dooley, became acting general manager, along with Joe Ianniello, COO at CBS. Mr. Dooley lasted only 90 days, replaced by Bob Bakish, who has been at the helm ever since.
There was also a reshuffle in the board of directors: five new members were selected by National Amusements, while those who had supported Dauman refused to run again. Viacom now has one of the most powerful tips among traditional media. His recovery strategy for Mr. Bakish was well received.
Leslie Moonves left CBS in rather different circumstances, as his alleged past sexual misconduct caught up with him. But his departure also entails a disastrous power struggle and a legal battle to an end. He also promises to improve corporate governance.
The main difference is that Mr. Moonves was more talented than Mr. Dauman and more valuable to his company. Despite a rebound in the announcement of a likely settlement at CBS, the company's shares are still below what they were before the first news regarding Mr. Moonves' allegation of sexual misconduct. It makes sense; it will be more difficult to replace. But new leaders will have the opportunity to improve some areas where society has fallen behind.
CBS is in a much better position than Viacom in 2016. Its library is stronger, its network and platforms more monitored. Mr. Moonves was very active and kept the green light even in semi-autonomous divisions like his Showtime streaming platform. Showtime may have more flexibility to make programming decisions to compete more actively with streaming competitors. Isolated by its place within a traditional media company, the platform does not focus on winning and keeping subscribers
Netflix
Is.
The ousting of Mr. Moonves could not only benefit the women who work at CBS, but also help the company.
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