Sumner Redstone Refuses to Fade Away

Working with senior citizens can be a frustrating experience. I have my share of war stories, having witnessed portfolio managers literally forget about $15 million positions when corporate names and ticker symbols changed. Strange, but true.  Reading glasses are not the only thing the AARP set can misplace.  We respect for our elders, but running money can be a young man’s game, with a few notable exceptions.

Indeed, working on an investment team can lead to many disagreements. Fragile egos need to be massaged, and managers don’t always like to acknowledge who is generating the performance. But Wall Street is not the only place where people collide...family businesses have issues too, and when they are publicly traded it can get a bit uncomfortable:

Sumner, on a personal level, let’s face it, success comes with a price. You’ve been through a divorce, a falling-out with your son, Brent, a public disagreement with your daughter. Has it all been worth it?

I know it’s been said differently, but I’m telling you, I gave my children their start. And my father, a wise man, told me I would live to regret it. Now, in the case of Brent, I sure had reason to live to regret it. I hope that will not be the case with Shari. And I don’t think it will be the case with Shari. We see more things the same way than differently, and I am telling you, I love her. I’m concerned about her well-being, and I know that she loves me. The press would have you believe that all of our correspondence and all of our conversations are adversarial. That is not true.

So let’s clear the air about Shari. What happened?

The answer is the press—and I generally find the press accurate—created an inflammatory situation out of nothing. Shari loves me. I love Shari. What’s in her interest is in my interest. What more can I say? I’m not about to throw Shari out of anything. She’s my daughter. I empowered her. Think about it. I made her second-in-command at National Amusements. I made her, with the help of the board, vice-chairman at CBS and Viacom. There’s nothing in that action that indicates some negative, hostile feeling toward my daughter.

O.K. What’s the succession plan?

That’s a good question. As John Malone said to me when I met with him recently at the Allen & Co. conference: “Some of us are going to die, Sumner, but you’re never going to die, so you don’t have to have a succession plan.” That’s my answer. You know I’m not going to discuss my will, my trusts, or whatever. But believe me, what I do, as I’ve done throughout my life, will be appropriate.

Is there more to this picture than meets the eye?

Once you’re gone, you can’t come back
When you’re out of the blue
And into the black

Neil Young

Redstone: Legacies are for Dead People
Business Week
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned.

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