Ex-Viacom CEO Must Act Fast On Paramount -- WSJ
August 24 2016 - 3:04AM
Dow Jones News
Former CEO will have less than a month to update the board on a
Paramount sale plan
By Joshua Jamerson
Viacom Inc. Chairman Philippe Dauman, who last week was ousted
as chief executive, will have less than a month to update the board
on a plan to sell a minority stake in Paramount Pictures, the
company said Tuesday.
New details were offered in a regulatory filing from Viacom,
days after it reached a settlement to end its drawn-out power
struggle with National Amusements Inc., through which Sumner
Redstone controls an 80% voting stake in the media giant. Viacom's
profits have been falling as ratings have declined amid the rise of
streaming competitors and Paramount's struggles at the box
office.
As part of the settlement, Mr. Dauman will have a chance to
present the board with plans to sell a stake in Paramount. He has
until Sept. 7 to provide the board an update, such as identifying
any potential investors and the status of those discussions. The
board would provide feedback and Mr. Dauman could submit a final
proposal for the board to consider.
Also in the filing, the company said its annual shareholder
meeting would be moved up to no later than Feb. 3 from its usual
spring timing. Six independent directors would have their terms
expire at the meeting, at which point National Amusements would
pick three to stay and three to depart. George S. Abrams, a
longtime Viacom director, will also be removed from the board.
Viacom's Chief Operating Officer Tom Dooley confirmed on Friday
in a memo to employees that he would become interim president and
CEO through September, when Viacom's fiscal year ends. Mr. Dooley
said he and the board will have made a decision on succession plans
by then. Mr. Dauman is slated to receive an exit package valued at
about $72 million and will remain as nonexecutive chairman until
Sept. 13.
Under terms of the settlement, the two sides will also cease
litigation over control of Viacom and National Amusements. Mr.
Dooley confirmed five directors nominated by National Amusements
will join Viacom's board. Those directors include Thomas May,
chairman of Eversource Energy, who is slated to be named chairman
after Mr. Dauman leaves that role.
What the settlement appears unlikely to resolve, once and for
all, is the status of the 93-year-old Mr. Redstone, whose mental
competency has been a matter of debate throughout the ordeal.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
August 24, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Via Renewables (NASDAQ:VIA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Via Renewables (NASDAQ:VIA)
Historical Stock Chart
From Apr 2023 to Apr 2024