National Amusements, CBS Issue Support For Moonves

Les Moonves

CBS Corp. chairman-CEO Leslie Moonves is under increasing pressure amid growing speculation that controlling shareholder Shari Redstone is considering implementing shakeup of the CBS board and his ouster.

After a flurry of rumors on Wednesday morning, National Amusements, the holding company that controls CBS Corp. and Viacom, issued a statement of support for Moonves.

“National Amusements has tremendous respect for Les Moonves and it has always been our intention that he run a combined company,” the company stated.

Earlier, CBS issued a statement in response to a CNBC report suggesting that Moonves will be forced out if CBS and Viacom cannot come to terms on a merger agreement. The wrangling between CBS and Viacom on merger talks urged by Redstone has led to major tension between Moonves, the longtime leader of CBS, and Redstone, president of National Amusements, which controls CBS and Viacom.

“The industry and the marketplace know Leslie Moonves’ record and we think it speaks for itself,” CBS said in a statement.

The biggest sticking point in the CBS-Viacom merger talks is the question of management of the combined company. Moonves wants to retain his core management team anchored by chief operating officer Joe Ianniello. Viacom and Redstone are pushing for Viacom CEO Bob Bakish to be named president and COO of the combined company. The impasse has caused major strain between Moonves and Redstone, spurring speculation that Redstone will move to replace some CBS board members. At present, CBS’ 14-member board is believed to be solidly behind Moonves.