Report: Viacom's Dauman Talking Exit

Phillippe Dauman

Viacom Inc. Chief Executive Officer Philippe Dauman has held talks about leaving the media company and settling litigation with controlling shareholder Sumner Redstone’s National Amusements Inc., a person with knowledge of the matter said.

According to Bloomberg, if a deal is reached, Thomas Dooley, chief operating officer, would take over as interim CEO of Viacom, owner of the cable TV networks MTV, Nickelodeon and Comedy Central, said the person, who asked not to be identified because the discussions are private. Dauman would receive about $83 million in severance, according to data from the company and the Bloomberg Pay Index.

Viacom board member George Abrams, a longtime attorney for Redstone, doesn’t want to settle, the person said. Dauman and Abrams are challenging their removal from the board of National Amusements and from a trust that will one day oversee Redstone’s holdings, including stakes in Viacom and CBS Corp., media companies worth $40 billion.

Abrams didn’t respond to a request for comment.
Dauman and Abrams have alleged in a Massachusetts case that Redstone, 93, is mentally impaired and is being manipulated by his daughter Shari. A judge there ruled last week that the case may proceed and ordered an October trial. At the same time, Viacom independent director Fred Salerno is suing Redstone in Delaware, while Redstone is pursuing his own litigation in California.

Dauman’s departure could end litigation playing out in the three states. The suits, involving some 43 attorneys, have been a major distraction for Viacom board members and executives, and have kept Dauman from pursuing key initiatives, including the sale of a minority stake in the company’s Paramount Pictures film division and a video streaming deal.

The WSJ reports The agenda of Wednesday’s board meeting is expected to include an update on the legal battles between Mr. Dauman and the Redstone family.

As has been the case in the past, the board’s litigation committee will debrief independent board members and Mr. Dauman and Ms. Redstone would leave the room as they are interested parties.

Sumner Redstone is expected to be listening via telephone from his California residence. He typically greets the board with a hello and then remains silent for the duration of the meeting, one person familiar with the matter said.