The CBS owner family isn't a traditional broadcast dynasty that started with radio towers. Instead, the empire behind the Columbia Broadcasting System grew out of a modest string of drive-in movie theaters built across the northeastern United States. Through a holding company called National Amusements, the Redstone family spent decades acquiring controlling stakes in entertainment giants, eventually stitching together a massive catalog that included MTV, Paramount Pictures, and CBS. Understanding who controls CBS means looking past corporate boardrooms and tracking a multi-generational family business defined by aggressive takeovers, courtroom battles, and internal succession drama.
The Origins of National Amusements
The foundation of the Redstone media empire began with Michael "Mickey" Redstone, an entrepreneur who operated drive-in movie theaters and liquor wholesale businesses in Massachusetts. In 1954, his son Sumner Redstone—a Harvard Law School graduate and former Department of Justice attorney—joined the family enterprise, then known as the Northeast Theatre Corporation.
Sumner quickly recognized that movie distribution and exhibition offered steady regional returns, but true wealth lay in content production. Reincorporating the enterprise as National Amusements in 1959, he expanded the theater chain aggressively. By the late 1970s, Sumner began leveraging the company's financial standing to buy significant blocks of stock in major Hollywood film studios, setting the stage for hostile takeovers that would reshape the American media landscape.
The Rise of Sumner Redstone and Viacom
Sumner Redstone’s transition from theater owner to global media mogul accelerated in 1987. Through a fierce, multi-month battle, National Amusements secured a controlling interest in Viacom for $3.4 billion. At the time, Viacom owned cable networks like MTV, Nickelodeon, and Showtime.
With Viacom as his primary corporate vehicle, Sumner orchestrated a series of massive acquisitions:
- Paramount Pictures: Acquired in 1993 after a high-stakes bidding war against QVC.
- Blockbuster Inc.: Brought into the fold in 1994 before being spun off a decade later.
- CBS Corporation: Purchased in 1999 for $37 billion, marking the largest media merger of its era.
This consolidation united broadcast television, cable networks, and film production under one corporate umbrella, though regulatory pressures and shifting market dynamics later forced structural splits and reunifications. You can read more about media consolidation milestones via The New York Times.
The Corporate Separation and Reunion of CBS
The relationship between CBS and the Redstone family experienced several structural shifts. In 2006, Viacom split into two separate publicly traded entities: CBS Corporation and a newly reconstituted Viacom. Despite the separation, National Amusements maintained controlling voting shares in both companies, ensuring that the Redstone family retained ultimate authority over CBS's strategic direction.
By the late 2010s, the fragmentation of television audiences and the rise of streaming platforms made standalone broadcast networks vulnerable. In 2019, CBS and Viacom officially re-merged to form ViacomCBS, which was later rebranded as Paramount Global. This reunion allowed CBS to feed content directly into the company's proprietary streaming service, Paramount+, combining traditional broadcast reach with digital subscription models.
Succession Struggles and Shari Redstone's Leadership
As Sumner Redstone aged, questions regarding his mental competency and corporate succession triggered intense legal battles. Friction between Sumner, external executives, and his daughter Shari Redstone dominated financial headlines for years.
Shari Redstone eventually consolidated her position, taking the helm of National Amusements and steering the family enterprise through its modern era. Unlike her father, who frequently engaged in public corporate warfare, Shari focused on stabilizing the asset portfolio and seeking strategic partnerships to navigate the decline of traditional cable television. Detailed accounts of these boardroom conflicts are documented in business histories like Penguin Random House.
The Skydance Merger and Modern Structure
The evolution of CBS ownership reached another milestone when Paramount Global agreed to merge with Skydance Media. This transaction restructured National Amusements' long-standing hold on the media ecosystem, transitioning the governance framework into a new corporate vehicle known as Paramount Skydance.
Today, while operational managers run daily programming for CBS News, CBS Sports, and entertainment divisions, the underlying voting control historically tied to the Redstone lineage ensures that foundational strategic decisions remain centralized.
Frequently Asked Questions
Does the Redstone family still own CBS directly?
No. CBS operates as a television network and division under its parent company, Paramount Global. The Redstone family controlled CBS indirectly through National Amusements, which held a dominant voting stake in the parent company.
When did CBS become part of Viacom?
Viacom originally acquired CBS in 1999 for $37 billion. The two companies separated in 2006 before merging again in 2019.
What was National Amusements before it owned media networks?
National Amusements began as a regional drive-in and indoor theater operator founded by Michael Redstone in Massachusetts.
How does National Amusements maintain control with minority equity?
National Amusements utilized a dual-class share structure. By holding the vast majority of voting shares, the family retained veto and appointment power over corporate leadership even when holding a smaller percentage of total economic equity.
