Sumner Redstone

A year after it looked like Sumner Redstone's media empire might collapse under a mountain of debt, the 86-year-old mogul found a way to keep his grip on Viacom Inc., CBS Corp. and other prized assets. On Wednesday, Redstone's privately held National Amusements Inc., the controlling shareholder of Viacom and CBS, said it would sell nearly $1 billion in stock in those companies to help retire $1.46 billion in debt. Redstone plans to sell all of his nonvoting shares in the two entertainment giants -- which could yield as much as $600 million from Viacom and as much as $345 million from CBS. The proceeds would allow Redstone to more than cover a $500-million debt payment due this month.

Show business mogul Sumner Redstone has finalized the divorce from his wife of five years, court documents show. The executive chairman of CBS Corp. and Viacom Inc. filed for divorce in October, citing irreconcilable differences with Paula Fortunato Redstone. The pair had negotiated a settlement and opted for an uncontested divorce.

Television personality Deborah Norville and Cristiana Falcone Sorrell, wife of one of the advertising industry's most influential executives, have joined the board of media company Viacom Inc. Norville, who rose to fame as co-host of NBC's "Today" show in 1990, has been the anchor of the syndicated newsmagazine show "Inside Edition" for more than 15 years.  Falcone Sorrell serves as an adviser to the chairman of the World Economic Forum....

Sumner Redstone placed his stake in Midway Games Inc. into a new company controlled by his daughter, Shari Redstone, in an effort to free him from $425 million of debt. The shift will place the stake in Sumco Inc., according to a filing with the Securities and Exchange Commission. Sumco will assume shares that had been used as collateral by Redstone for a loan from Citigroup Inc.

Midway Games Inc., the Chicago video game maker sold this month by Sumner Redstone, will cut 25% of its workforce and suspend development of some titles to scale back expenses as the company works to repay creditors. Midway said it would close its Austin, Texas, studio, according to a regulatory filing. The suspended games were planned for release in 2010 or 2011 and hadn't been announced publicly, Midway said.

CBS Corp., the broadcaster controlled by billionaire Sumner Redstone, acquired about 78% of CNet Networks Inc. through a tender offer after the companies agreed to a $1.8-billion takeover in May. About 119.2 million CNet shares were tendered as of Friday, CBS said. The firm will acquire CNet's remaining shares through an offer expiring at midnight Wednesday.

Viacom Inc., the media company controlled by Sumner Redstone, said it would pay new Chief Executive Philippe P. Dauman $2 million a year plus a bonus of $7 million or more. Dauman, who replaced Tom Freston this week, also was granted stock options worth $12 million, New York-based Viacom said in a regulatory filing. The options will vest in six months.

Blackstone Group, Shari Redstone's advisor, has expanded its role in recent weeks to assist National Amusements Inc. in restructuring $1.6 billion in debt, four people familiar with the discussions said. National Amusements is negotiating with its bankers to refinance two $800-million loans, one that was due Friday and another that is due next year.

A group led by Sumner Redstone, president of Dedham, Mass.-based National Amusements, increased its holdings from the 6.2% reported last June. A Viacom International spokesman was not immediately available for comment, but the company said last June that it believed Redstone purchased his shares on a friendly basis. Last May, New York investor Carl C. Icahn acquired 17% of Viacom's shares before selling the block back to the company at an estimated $21 million profit.