Viacom Inc. today announced it is nearing a sale of 49 percent of Paramount Pictures.
Philippe Dauman, executive chairman and chief executive of the media conglomerate delivered the Paramount announcement among other comments at this morning’s Gabelli & Company Movie and Entertainment Conference in New York. Gabelli owns a significant number of Viacom shares.
“It’s been a tough year for Paramount,” Dauman said. “That’s no secret.”
Though the original goal of closing an agreement by the end of June has “slipped,” he said, Dauman emphasized that a strategic Paramount deal is still being considered “despite recent events that have slowed down the process.”
After being ousted from a trust set up by Viacom Chairman Emeritus Sumner Redstone last month, Dauman immediately fired back with a lawsuit that alleges Redstone did not have the mental capacity to carry out such a decision. Dauman was also removed from the National Amusements Inc. board, the parent company that controls Redstone’s shares in both Viacom and CBS, the same day. Since then, Redstone has made it clear that he plans to replace Dauman on the Viacom board, as well, citing poor performance.
“I’ve been side by side with Sumner, who is my great friend and has been for 30 years,” said Dauman, noting that he helped Redstone with the original Paramount acquisition 20 years ago. “The deal would unlock value of approximately $10 or more per Viacom share if we can bring this transaction that we are working on to a successful conclusion.”
Dauman said that its six major global networks – including MTV, Nickelodeon and Comedy Central – have already closed about half of their upfront advertising sales. He also touted Viacom’s success in the international marketplace, noting that 40 percent of the company’s revenue comes from its distribution of 23 media networks in the U.K.
Media and Entertainment reporter Kristin Marguerite Doidge can be reached at kdoidge@labusinessjournal.com. Follow her on Twitter @kmarguerite_usc for the latest in L.A. media news.
