Most observers had expected that Redstone's daughter would take the helm of the US media company and broadcaster, where she is currently vice-chairman, once the 85-year-old media mogul stepped down.
However, according to US reports, a public disagreement over corporate governance between the two has cast doubt over this succession plan.
When asked on US television, whether Shari will succeed him, Sumner Redstone said: "No."
Redstone said a deal has been reached for him to buy out his daughter's stake in CBS and Viacom. In return, his daughter will receive control of National Amusements in exchange for her interest in CBS and Viacom.
National Amusements holds the Redstone family's stakes in CBS and Viacom, plus a 1,500-screen cinema chain in the US. Sumner Redstone owns 80% of National Amusements, while Shari Redstone owns 20%. National Amusements controls 79% of voting shares in Viacom, and 76% of voting shares in CBS. National Amusements also owns 11% of the equity of each media company.
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