Sumner Redstone Against Selling Stake In Paramount Pictures

Sumner Redstone Against Selling Stake In Paramount Pictures

$VIA

Viacom Inc’s (NASDAQ:VIA) controlling shareholder Sumner Redstone, 92 anni, opposes CEO Philippe Dauman’s plan to sell a minority stake sale in Viacom’s Paramount Pictures movie studio, the WS-J reported Monday.

The report added to uncertainty over the future of Viacom, the conglomerate that owns MTV, Comedy Central, Nickelodeon and other TV channels, as CEO Dauman faces pressure to boost the company’s stock price.

Mr. Dauman announced in February that the company would seek a buyer for a minority stake in the studio, a prize asset.

Mr. Dauman visited the home of Mr. Redstone in February to seek his support for the plan.

Even though Mr. Redstone has trouble speaking, Mr. Dauman thought he heard “Yes,” it was reported.

He later recounted his visit to Viacom’s Board of Directors, telling them that a nurse had seen Mr. Redstone agree to the plan, which could help pacify Viacom investors who want major strategic changes.

After the sale plan was announced, Redstone summoned Paramount chief Brad Grey and expressed displeasure about the potential sale, the newspaper reported.

Mr. Redstone later said the same thing to other people, including Mr. Dauman. “I do not want to sell Paramount,” he said according to reports.

It said he did not raise any opposition at a February board meeting of Viacom. The company could not be immediately reached for comment on Monday.

Hollywood media reports said a deal for a minority stake in Paramount is expected by the end of June and that company insiders have said more than 36 parties are interested in bidding on a piece of the film studio.

The THR quoted a Viacom spokesman as saying after the WS-J report that the sale process was continuing.

Stay tuned…

HeffX-LTN

Paul Ebeling

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