Deal Reportedly Reached In Viacom Saga, With Philippe Dauman Stepping Down As CEO
August 19, 2016 at 4:10 AM (PT)
A settlement appears to have been reached in the dispute between VIACOM, SUMNER and SHARI REDSTONE, and CEO PHILIPPE DAUMAN, reports BLOOMBERG.
Under the deal, approved by the VIACOM board, DAUMAN will step down as the REDSTONE's have desired, will become Non-Executive Chairman through SEPTEMBER 13th, and COO TOM DOOLEY will serve as Interim CEO through at least the end of SEPTEMBER. As Non-Executive Chairman, DAUMAN will be able to pitch the sale of 49% of PARAMOUNT PICTURES, a move DAUMAN has aggressively championed and the REDSTONE's have opposed. A sale of part of PARAMOUNT would require unanimous approval by the board. DAUMAN will also receive a $72 million severance package.
Also part of the deal will be five new directors, as proposed by the REDSTONE's in their purge of the VIACOM board that prompted lawsuits by DAUMAN and GEORGE ABRAMS in MASSACHUSETTS and the board in DELAWARE; three present directors would leave after the next board meeting, according to BLOOMBERG sources, and new appointee THOMAS MAY would become Chairman.