Philippe Dauman Out as CEO of Viacom18 Aug, 2016 By: Erik Gruenwedel
Executive’s departure leaves pending Paramount Pictures minority stake sale in doubt
Philippe Dauman, CEO of Viacom since 2006, resigned his position, with COO Thomas Dooley assuming the interim CEO position until the end of September following an Aug. 18 board meeting.
Dauman, who keeps his non-executive chairman board position until Sept. 13, has been at legal odds with 93-year-old Sumner Redstone and his daughter Shari Redstone over future control of the media company, whose assets include Paramount Pictures and Paramount Home Media Distribution.
Redstone’s National Amusements company controls 80% of Viacom’s voting stock.
While Dauman leaves with millions of dollars, his exit throws a wrench in the pending 49% stake sale of Paramount Pictures. The CEO acknowledged in Viacom’s most-recent fiscal call that consummation of the multi-billion-dollar transaction had slowed. Redstone reportedly is against the sale.
Paramount Home Media Distribution reported a 4% drop in third-quarter (ended June 30) home entertainment revenue to $192 million, from $200 million in the previous-year period. Through the first nine months of the fiscal year, home entertainment revenue was down 18% to $584 million, compared with $712 million a year ago.