Ailing media mogul Sumner Redstone resigns as chair of CBS

Associated Press

Wednesday, Feb. 3, 2016 | 3:35 p.m.

NEW YORK — Sumner Redstone, the ailing 92-year-old media mogul who controls media giants CBS and Viacom, has stepped down as executive chairman of CBS amid a courtroom battle over his health and mental capacity. CBS Chief Executive Leslie Moonves will replace him as chairman.

Redstone's resignation took effect Tuesday, leaving him chairman emeritus of CBS, the company said. It did not give an update on his health. Redstone remains executive chairman of Viacom. He effectively controls both companies through a trust.

CBS shares rose 4.4 percent in after-hours trading to $50.37 after already climbing 3.5 percent in the regular session.

Redstone has been at the center of a months-long court fight. His ex-girlfriend and longtime companion Manuela Herzer, who had been in control of Redstone's care, issued a court challenge over his decision-making capacity after she was expelled from his house in October. His longtime attorney Philippe Dauman, now Viacom's CEO, has authority to make medical decisions if Redstone is deemed incapacitated by his physician, but that has not yet happened.

Herzer contends that Redstone is unable to speak and cannot meaningfully engage in decision-making about his medical care or other subjects.

Redstone's daughter, Shari Redstone, will continue to serve as vice chair of the CBS board, the company said.