Viacom Inc.’s revamped board will meet next week to discuss strategic options, including the possibility of deals involving movie studio Paramount Pictures, according to people familiar with the matter.
Bloomberg reports the directors are holding an all-day strategic review on Sept. 14, said the people, who asked not to be identified discussing private information. Former Chief Executive Officer Philippe Dauman submitted details of his talks to sell a minority stake in Paramount to the board last week.
The Viacom board has the tall task of turning around a media company whose sales, profit and stock price have declined for two straight years.
Shari Redstone, daughter of controlling shareholder Sumner Redstone, has taken on a prominent role in the boardroom since her family dismissed Dauman and installed five new board members.
She is considering recombining Viacom and CBS Corp., people familiar with the matter told Bloomberg, though any such deal would require the approval of both companies’ boards. CBS hasn’t received any indication that a deal is imminent, people familiar with the company said.
Viacom’s board must also decide what to do with its $12 billion in debt. The company can either let credit ratings agencies downgrade the debt, or work aggressively to improve its leverage by cutting its dividend or selling assets.
While selling a stake in Paramount would help the company pay off some of its debt, the biggest strategic concern for Viacom’s new board is the erosion of viewership for its cable channels. MTV and Comedy Central are particular concerns, though even viewership of Nickelodeon has slipped over the past few years.
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