Sumner Redstone Out as Viacom Executive Chairman--2nd Update
05 February 2016 - 7:57AM
Dow Jones News
By Keach Hagey
Viacom Inc. said Thursday that Chief Executive Philippe Dauman
will succeed media mogul Sumner Redstone as the company's next
executive chairman.
The decision, announced after a morning board meeting at Viacom,
follows news on Wednesday that Mr. Redstone resigned from the same
post at CBS Corp. and was replaced by CBS CEO Leslie Moonves.
Mr. Redstone, 92 years old, continues to control Viacom and CBS
through nearly 80% voting stakes. He will take on the new role of
chairman emeritus at both companies.
Mr. Dauman is a longtime confidant of Mr. Redstone who has
served as CEO since 2006. His elevation to the chairman position
wasn't a foregone conclusion. Viacom, owner of cable networks like
MTV and Comedy Central and Paramount film studio, has faced
headwinds in its cable business and suffered a one-third drop in
its stock price over the past year.
Some investors had expressed displeasure with Mr. Dauman's
leadership and have been pushing for change. Viacom shares opened
up around 5% at $47 on Thursday, as investors anticipated dramatic
change at the company, but lost some ground after Mr. Dauman's
election to chairman was announced. Shares were up 1% in early
trading.
"In choosing a successor to Sumner, the board considered the
need for seasoned leadership in this time of unprecedented change,
Philippe's business experience and unparalleled knowledge of
Viacom, and his long-term vision for the company," said Viacom
board member William Schwartz. "We believe his becoming executive
chairman is in the best interests of the company and all
shareholders."
The choice of Mr. Dauman wasn't unanimous. Shari Redstone, Mr.
Redstone's daughter and the vice chair of Viacom, didn't vote in
favor of Mr. Dauman's chairmanship, according to people familiar
with the matter.
Ms. Redstone issued a statement on Wednesday foreshadowing such
a vote by saying that she didn't believe that her father's
successor at Viacom could be a "trustee of my father's trust or
otherwise entwined in Redstone family matters, but rather a leader
with an independent voice."
Both Mr. Dauman and Ms. Redstone are members of the trust that
will oversee Mr. Redstone's holdings in CBS and Viacom once he dies
or if he is incapacitated.
As was the case with the CBS leadership change, Ms. Redstone was
offered the position of nonexecutive chairman of Viacom but
declined, according to people familiar with the matter.
Write to Keach Hagey at keach.hagey@wsj.com
(END) Dow Jones Newswires
February 04, 2016 15:42 ET (20:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
CBS (NYSE:CBS)
Historical Stock Chart
From Apr 2024 to May 2024
CBS (NYSE:CBS)
Historical Stock Chart
From May 2023 to May 2024