>> It's the kind of boardroom brawl that's rarely been seen before. A judge Thursday handing Shari Redstone a victory in the drama engulfing the proposed merger of CBS and former parent Viacom. Which both have one thing in common, Redstone is a controlling shareholder. The judge blocked a restraining order on Redstone that would have stopped her from interfering in a special board meeting, where CBS directors wanted to diminish her family's voting power.
Reuters media correspondent Jessica Toonkel says the ruling won't end the legal battles or the acrimony between Redstone, her family's company, National Amusement, and CBS top executive Les Moonves.>> I do not see them kissing and making up. I don't see a world where Les Moonves says, okay, I'll merge with Viacom, let's do this deal.
I don't know what the best scenario is for both parties, at this point, honestly. I mean, if Shari wins, she's kind of in a position where she has to get rid of Les and the board. And that's tough, right, because investors want Les to run the company. If she loses, she loses voting control.
>> The showdown all centers on the proposed merger of two companies that were put together and then split apart by Shari's father, media mogul Sumner Redstone. Shari says the deal is imperative to creating a stronger media company, in a world vastly changed by the likes of Netflix. But a special board committee at CBS isn't happy with the terms, since Viacom is no longer the media powerhouse it used to be.
And it didn't like reports that Shari was possibly looking to replace Moonves, who is credited with the success at CBS. Investors were clearly upset with Thursday's ruling. CBS shares tumbled more than 4%, and the final scene in this saga has yet to be written.