Viacom determined to sell Paramount, despite Redstone objections

Sumner Redstone’s National Amusements Inc, which holds 80 percent of Viacom voting shares, has started looking for potential board members for Viacom, the Wall Street Journal reported, citing people familiar with the matter.

Dauman and Viacom board member George Abrams filed a lawsuit last month challenging their removal from the trust that will control Viacom and CBS once Redstone dies or is incapacitated.

The amount, which would be triggered if he is not given the option of succeeding DAUMAN, represents three years’ salary and is included in a “good reason” clause in his contract that would also include bonuses, benefits, and stock and option awards.

A woman exits the Viacom Inc. headquarters in New York April 30, 2013.

Dauman predicted that a sale of 49 percent of Paramount would unlock about $10 of value per share and that proceeds would pay down Viacom debt and have tax advantages. Among those in consideration for spots on the board, according to the report, are venture capitalist Kenneth Lerer, former Sony executive Nicole Seligman, former Discovery Communications chief Judith McHale and Eversource Energy Chairman Thomas J. May. Nancy Sterling, a spokeswoman for Ms. Redstone, had no comment.

Viacom’s assets include cable channels MTV, Nickelodeon and Comedy Central as well as the Paramount Pictures movie studio.

But Dauman said Viacom was having a strong performance in the upfront because of its content and because of its data driven products for better targeting ad campaigns.

Sumner Redstone acquired Viacom back in 1987 when it was still a part of CBS.

But the Viacom bylaw alterations, announced Monday, appear to scuttle that effort – at least for now – because the changes mandate a unanimous vote of Viacom board members for any Paramount transaction. She has publicly opposed Mr. Dauman’s ascent at the company and, according to court documents, has “frequently repeated to the Viacom board” that Mr. Dauman should be replaced.

War broke out across Mr. Redstone’s $40 billion media empire last month. That will no longer happen, he said, because attorneys for Sumner Redstone have moved to block the sale. Chief among them is Viacom Chief Operating Officer Tom Dooley, who could be in for a big payday if Redstone decides to oust Dauman.