CBS stock falls on report of New Yorker article alleging misconduct by Les Moonves

The New Yorker is about to publish an investigation of CBS Corporation and its CEO Leslie Moonves. News of the impend...

Posted: Jul 28, 2018 12:36 PM
Updated: Jul 28, 2018 12:36 PM

The New Yorker is about to publish an investigation of CBS Corporation and its CEO Leslie Moonves. News of the impending investigation sent the company's stock down more than 6%.

Members of the CBS board of directors say they will take the allegations seriously.

But the magazine story hasn't actually come out yet.

Ronan Farrow, who has investigated President Trump, Harvey Weinstein, and other powerful men in the past year, has been pursuing a story about Moonves and CBS, according to people with knowledge of his work.

In TV circles, there have been rumors of an impending Farrow story about Moonves for the past six months.

Some people began to turn skeptical about the potential story because it had not materialized yet.

But the story is, in fact, set to be published on the web sometime Friday.

The New Yorker declined to comment, citing its policy of not commenting on reporting efforts before publication.

But The Hollywood Reporter foreshadowed the Farrow report in an item of its own Friday morning. According to The Hollywood Reporter, Farrow's piece is about CBS as a whole, including Moonves, who is said to be accused of sexual misconduct in the past.

CBS stock fell 4% as soon as the THR item came out. It closed down 6.1%, at $54.01 a share.

Moonves has been one of the most celebrated and well-respected executives in the television industry. A titan of broadcasting, he has guided CBS for the better part of twenty years.

Moonves is embroiled in a bruising legal battle with CBS vice chair Shari Redstone, whose holding company effectively controls CBS and its sister media company Viacom.

Related: CBS crisis comes to a head as Moonves and Redstone fight for network's future

The CBS board is split, with the independent members of the board backing Moonves in his quest for more autonomy from Redstone.

On Friday, in response to the expected Farrow report, the independent directors of the board said they would look into the charges made in the forthcoming article.

"All allegations of personal misconduct are to be taken seriously," the board members said in a statement. "The Independent Directors of CBS have committed to investigating claims that violate the Company's clear policies in that regard. Upon the conclusion of that investigation, which involves recently reported allegations that go back several decades, the Board will promptly review the findings and take appropriate action.

"The timing of this report comes in the midst of the Company's very public legal dispute. While that litigation process continues, the CBS management team has the full support of the independent board members. Along with that team, we will continue to focus on creating value for our shareowners."

Moonves did not immediately respond to a request for comment.

In a statement issued Friday afternoon, a representative for Shari Redstone said, "The malicious insinuation that Ms. Redstone is somehow behind the allegations of inappropriate personal behavior by Mr. Moonves or today's reports is false and self-serving. Ms. Redstone hopes that the investigation of these allegations is thorough, open and transparent."

-- CNN's Dylan Byers and Jill Disis contributed reporting

Terre Haute
Overcast
46° wxIcon
Hi: 48° Lo: 39°
Feels Like: 42°
Robinson
Overcast
44° wxIcon
Hi: 46° Lo: 37°
Feels Like: 40°
Indianapolis
Overcast
46° wxIcon
Hi: 49° Lo: 41°
Feels Like: 42°
Rockville
Overcast
40° wxIcon
Hi: 47° Lo: 38°
Feels Like: 40°
Casey
Overcast
39° wxIcon
Hi: 45° Lo: 37°
Feels Like: 31°
Brazil
Overcast
46° wxIcon
Hi: 48° Lo: 39°
Feels Like: 42°
Marshall
Overcast
46° wxIcon
Hi: 45° Lo: 37°
Feels Like: 42°
Cloudy with Afternoon Rain
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 378958

Reported Deaths: 9775
CountyConfirmedDeaths
Cook1755865421
DuPage22783606
Lake20630510
Will18356427
Kane16621347
Winnebago10183180
St. Clair7920220
Madison7151154
McHenry6310121
Champaign609129
Unassigned4767270
Peoria454470
McLean415034
Rock Island400590
Sangamon398863
Kankakee338880
Macon305552
Kendall267030
Tazewell264556
LaSalle240863
DeKalb235842
Coles191239
Williamson188359
Adams186219
Boone186025
Clinton175526
Vermilion171810
Jackson154226
Whiteside140027
Knox129916
Randolph127115
Ogle11897
Effingham11654
Marion101219
Franklin9829
Stephenson9817
Grundy9657
Monroe92030
Bureau90616
Jefferson90548
Morgan89624
Henry8467
Christian81629
Macoupin80711
Union78025
McDonough76420
Lee7102
Fayette68024
Douglas6729
Shelby66912
Crawford6476
Livingston63210
Woodford61814
Montgomery61016
Logan5904
Saline5599
Fulton5181
Bond4999
Jo Daviess4987
Warren4968
Iroquois49219
Wayne48212
Jersey47321
Cass46211
Perry43816
Moultrie4114
Carroll41011
Johnson3550
Pike3536
Richland33416
Lawrence3338
Clay31113
Hancock3094
Clark30817
Washington3072
Mason3051
Greene29015
Cumberland2886
White2694
Jasper26410
Mercer2626
De Witt2606
Piatt2500
Pulaski2351
Wabash2265
Ford19614
Menard1851
Marshall1563
Edgar15510
Massac1542
Henderson1280
Alexander1201
Hamilton1202
Edwards1080
Brown1070
Gallatin1072
Scott1060
Putnam920
Schuyler901
Stark863
Calhoun660
Hardin530
Pope421
Out of IL170

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 162607

Reported Deaths: 4130
CountyConfirmedDeaths
Marion25871792
Lake14222358
St. Joseph9532166
Elkhart9156137
Allen8552230
Hamilton6335114
Vanderburgh609062
Tippecanoe391815
Porter341650
Hendricks3367134
Monroe333238
Johnson3239130
Delaware307675
Clark303163
Vigo272440
Madison248096
LaPorte236161
Cass228523
Warrick201565
Kosciusko198427
Floyd185868
Howard168466
Bartholomew146958
Dubois145526
Marshall145126
Wayne137931
Henry131330
Grant131039
Boone128050
Hancock123144
Noble121935
Jackson118517
Dearborn101728
Morgan98940
Lawrence94737
Gibson92812
Daviess91334
Clinton90316
Shelby89431
LaGrange82815
Knox81310
Harrison79924
Posey7667
Putnam76616
DeKalb75811
Fayette73918
Jasper6655
Miami6615
Steuben6578
Montgomery62022
White61016
Greene57338
Scott54513
Decatur52539
Adams5237
Whitley4796
Ripley4748
Clay4587
Sullivan45514
Wells44911
Wabash4389
Starke4378
Huntington4365
Orange42125
Spencer4126
Washington3863
Franklin38125
Randolph38110
Jennings37913
Fulton3764
Perry36114
Jefferson3525
Pike34318
Carroll33813
Jay3316
Fountain3193
Tipton28223
Vermillion2681
Parke2504
Newton23611
Blackford2344
Rush2304
Owen2111
Martin2040
Pulaski1753
Crawford1631
Brown1463
Ohio1337
Union1140
Benton1100
Switzerland970
Warren891
Unassigned0236