The 92-year-old Sumner M. Redstone has resigned as the chairman of CBS. The company's position for CEO and president will be replaced by Leslie Moonves while Redstone becomes the company's chairman emeritus. His resignation is effective immediately.

"Mr. Moonves election by the Board follows the recent resignation of Sumner M. Redstone from his position of Executive Chairman, which was effective February 2, 2016, and his appointment to the role of Chairman Emeritus, CBS Corporation," CBS said in a press release.

According to Variety, other investors interpret the move as an effort to "solidify the management of the company given questions about the health of its executive chairman."

Over the years, the media mogul Redstone has repeatedly declared how he had no plans of retiring from his $39 billion entertainment empire's highest position. But because of the pressure and the present lawsuit charged against him that challenged his mental competence, he finally decided to step down.

"The elevation of Moonves is unsurprising considering his unique popularity within both the investment community and the industry," said Brian Wieser, a media analyst with Pivotal Research.

Meanwhile, Redstone is still the executive chairman of Viacom but there are already speculations of him retiring from the company. Carl Folta, the company's spokesperson, informed the media that a board meeting is scheduled on Thursday, Feb. 04.

The meeting is expected to focus on who will succeed Redstone's position. Philippe P. Dauman, the Viacom chief executive, is likely going to be Redstone's successor. But because it appears that he didn't have the support of Shari Redstone, Redstone's daughter, the decision is not expected to be a unanimous vote.

"For Redstone-controlled Viacom the news is arguably more meaningful. Investors have been understandably disappointed in the company, and have been generally more disappointed in management in recent periods," Weiser said.

As stated by the Dailymail, as soon as the announcement was set Wednesday, Feb. 3, CBS stock has increased by 7 percent.

Moonves said in a statement that accepting his new position in the company is such a great honor. He also thanked all the people who have helped him reach his current position especially to Redstone for supporting and guiding him all these years.

"I would also like to thank our excellent board of directors, who have contributed so significantly to our success. The people of CBS have achieved much together and I believe the best is yet to come," Leslie Moonves said.