Shares of Viacom (VIAB - Get Report) are traded up slightly on Thursday afternoon despite news that lawyers for Shari and Sumner Redstone plan to ask Massachusetts probate courts to dismiss a suit filed against the company last month.
Viacom's Chief Executive Philippe Dauman and director George Abrams are suing Viacom in order to be reinstated to the trust that controls the $40 billion company, National Amusements, after the two received a notice of removal from the trust on May 20. The two were replaced by two supposed stewards with ties to Shari Redstone. Sumner Redstone filed a counter suit in California. National Amusements controls about 80% of the voting stock for CBS and Viacom.
Viacom, which owns networks including MTV, Nickelodeon and Comedy Central, among other media assets, traded up 55 cents, or 1.3%, to $42.75 per share.
The plot thickened when Sumner's granddaughter Keryn Redstone entered the battle in June because she believes her relatives manged to "brainwash" and "kidnap" her grandfather, taking advantage of his "debilitated state of mind and frail health," she said in a statement.
Many assert that Shari is manipulating her father's health to make significant changes to the company.
TheStreet's Jim Cramer on Wednesday broke down the problems really facing Viacom.
Viacom's executives are "overpaid," and should take a "big time" pay cut, said Cramer. "This is one of those instances where the CEO is paid so much that if he were fired you could raise numbers."
As far as the company's programming, Cramer said this recent news should not effect it -- including trading and valuation.
"When you look at Viacom's programming you have to question whether any of it needs to be watched now," he said. "The answer is 'no.' And when it's 'no,' then the valuation of the stock goes down."
Comparatively, Cramer said Nexstar Broadcasting (NXST - Get Report) , whose chairman and CEO Perry Sook appeared on "Mad Money" on CNBC with Cramer last night, is a good play for investors preparing for the next election cycle.
"Post millennials still don't just look at their handhelds. They actually watch TV," Cramer said. "And that's the kind of thing that is working is actual local stations."