Judge Allows Suit Accusing CBS Chief of Backing Viacom Merger for $125 Million Payout
Gene Maddaus Senior Media WriterA Delaware judge has allowed CBS stockholders to sue over the 2019 merger of Viacom and CBS, finding a reasonable claim that former CBS chief Joseph Ianniello “sold” his support for the deal to Shari Redstone in exchange for a $125 million payout.Ianniello was president and chief operating officer under former CEO Les Moonves, and he sided with Moonves in trying to block the merger, arguing it would be bad for CBS. Redstone owned a controlling stake in both companies through National Amusements Inc., and was seeking to combine them to achieve greater scale.But after Moonves’ ouster over misconduct allegations in September 2018, Ianniello had a change of heart.