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Tag: Redstone

  • Merger talks on the anvil once again for CBS, Viacom

    Merger talks on the anvil once again for CBS, Viacom

    MUMBAI: Coming on the heels of the Fox-Disney merger, CBS Corporation and Viacom Inc are inching toward formally exploring a corporate reunion of the two halves of the Redstone media empire.

    According to a Variety.com report, there is less opposition within CBS this time around compared to the last attempt by CBS/Viacom vice chairman Shari Redstone to bring the two companies back together in the fall of 2016. The early rumblings are that CBS would acquire Viacom in an all-stock transaction.

    There are still big hurdles to clear in terms of valuation for Viacom, given the systemic concerns around its lower-profile U.S. cable networks, but there is also an understanding that the media landscape is changing fast and the potential for the two sides to work together on international growth initiatives provides rationale for a reunion. Viacom’s share price has also tumbled further during the past year, making a deal more attractive on a financial basis for CBS shareholders. As of Thursday, Viacom had a market cap of $13.8 billion, with shares closing at $33.61. CBS is valued at $22.7 billion, with shares closing at $59.27.

    Sources close to the situation emphasise that neither side has yet engaged bankers or advisers to hammer out an agreement. But CBS Corp. CEO Leslie Moonves and Viacom CEO Bob Bakish have had at least one discussion about the possibility of merging, according to a Reuters report Thursday.

    CBS and Viacom were first brought together in 2000 by Sumner Redstone, now chairman emeritus of both firms. The two were split up again in January 2006 out of Sumner Redstone’s frustration with a sagging stock price.

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  • Viacom announces leadership transition at Paramount Pictures, CEO Brad Grey to step down

    MUMBAI: Viacom Inc. has announced that Brad Grey will step down from his role as chairman and chief executive officer of Paramount Pictures. The company is commencing a comprehensive search to identify a successor, and Grey will remain at Paramount for a period to support the transition.

    Viacom president and CEO Bob Bakish, who would be present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, on 1 March, will work closely with Paramount’s leadership team, including Marc Evans (President, Motion Picture Group); Andrew Gumpert (Chief Operating Officer); Amy Powell (President, Paramount Television and Digital Entertainment); Megan Colligan (President, Worldwide Distribution and Marketing) and Mark Badagliacca (Chief Financial Officer), to maintain momentum until a new CEO is appointed.

    “Brad has overseen the production and distribution of some of Paramount’s most celebrated hits, and more recently championed the successful relaunch of the studio’s television division. We are grateful for his 12 years of extraordinary service and wish him every continued success,” said Bob Bakish. “Paramount has produced some of the most recognizable and cherished films in Hollywood, making it a key part of Viacom’s history, and our future. As we look ahead, I couldn’t be more excited by our early plans to re-energize the slate, more deeply integrate the studio and networks, and make the most of our incredible assets.”

    “It has been my privilege to be a part of Paramount’s storied history, and I am grateful to Sumner Redstone for giving me this opportunity. I want to wish Shari, Bob and their entire team the best as they embark on Viacom’s next chapter,” said Brad Grey. “From the moment I came to Paramount in 2005, I saw myself as a steward of an iconic institution. In that time, it has been my great honor to work with a group of wildly talented storytellers. But above all, I am indebted to the wonderful people at this studio, whose creativity, professionalism and integrity are second to none.”

    US$1.3 bn subordinated debt offering

    Viacom announced that it has agreed to sell US$ 650 million in aggregate principal amount of 5.875 per cent fixed-to-floating rate junior subordinated debentures due 2057 at a price equal to 100.000 per cent of the principal amount thereof (the “NC5 Debentures”) and US$ 650 million in aggregate principal amount of 6.250 per cent fixed-to-floating rate junior subordinated debentures due 2057 at a price equal to 100.000 per cent of the principal amount thereof (the “NC10 Debentures” and, together with the NC5 Debentures, the “Debentures”).

    The sale of the Debentures is expected to close on 28 February, 2017, subject to customary closing conditions. Viacom intends to use the net proceeds from the offering primarily for the repayment of outstanding indebtedness.

  • MTV networks COO Michael Wolf quits

    MTV networks COO Michael Wolf quits

    MUMBAI: There seems to be no end to the executive departures at Sumner Redstone’s Viacom Inc. A day after Gail Berman resigned as president of Viacom’s Paramount Pictures, putting in less than two years in the organization, MTV Networks president and chief operating officer Michael Wolf is also leaving Viacom’s MTVN.

    Wolf left McKinsey to join the media group’s transition to the digital age but is leaving barely a year later.
    According to the company’s website, Wolf and MTVN president of affiliate sales and marketing Nicole Browning will be leaving the company.

    Wolf led the company’s business and technology operations, including advertising sales, affiliate sales and marketing, business and strategy development, business and legal affairs, finance, information systems and technology and production operations.

    Browning oversaw the distribution activities of MTV Networks including MTV: Music Television, MTV 2, mtvU, MTV Tr3s, MTV World, VH1, Nickelodeon, Nick at Nite, Spike TV, Comedy Central, Logo, TV Land, Noggin/The N, CMT, VH1 Classic, The Digital Suite from MTV Networks, and BET Networks including BET, BET Gospel, and BET J.

    Earlier last week Wolf had revealed to the media that there was a “gap in perception” in the market about Viacom’s internet activities. He also added, ‘We’ve been able to accomplish a huge amount in the 15 months I’ve been here’. During his tenure, Viacom acquired a slew of internet gaming and film startups, including Xfire and Atom Entertainment.

    Wolf’s departure had been a subject of speculation since Redstone, Viacom’s chairman and controlling shareholder, ousted Tom Freston in September 2006 from his post as chief executive and replaced him with board member Philippe Dauman.

    It was widely believed that Freston, one of the MTV founders, was blamed for the company’s failure to acquire MySpace, the popular social networking site, and the perception that the cable group was being eclipsed by a new generation of youth-oriented media companies.

    In early 2006 Viacom’s research maven Betsy Frank exited the company after nearly a decade. Company sources pointed out that they would be working with Frank on a consultancy basis over a number of projects. MTVN president ad sales Larry Divney also stepped down on 1 April but would continue to be exclusive consultant to the network on their various projects.

    This is the latest in a long line of top ranking executive exits at Viacom’s MTV Networks which in hindsight could now be said to have begun with the resignation of MTV COO Mark Rosenthal in 2004 following Judy McGrath’s promotion to chairman and CEO of MTV Networks.

    The company’s January 2006 split from CBS has led to a huge upheaval in its top management ranks. Wolf’s departure is the latest in this series. MTVN will begin searches for a new COO and a new head of Affiliate Sales and Marketing immediately it has said.

  • Viacom revises employment agreement with Redstone

    Viacom revises employment agreement with Redstone

    MUMBAI: US media conglomerate Viacom’s board of directors has announced that it has entered into a revised employment agreement with its Executive Chairman Sumner M Redstone.

    The agreement reduces cash salary and bonuses effective 1 January, 2007 and immediately directly links the majority of Redstone’s compensation to superior shareholder returns.

    Redstone and the Compensation Committee of the Viacom Board are extending the equity driven approach to compensation and incentives adopted by Viacom in its recently announced agreements with Viacom president and CEO Philippe P Dauman and Viacom’s senior executive VP and chief administrative officer Thomas E Dooley.

    Redstone said, “As both a major shareholder and as the executive chairman of the company, I have long been in favour of the pay-for-performance model, which I believe is good for shareholders and good for the company. I want to commend the Compensation Committee for not only listening to our stockholders, but for their leadership, creativity and discipline in creating this new shareholder-friendly compensation structure.”

    Under the terms of the new agreement, beginning in 2007, Redstone’s salary will be reduced to $1 million per year (from current $1.75 million), and deferred compensation, presently $1.3 million per year, will be eliminated. His target cash bonus under Viacom’s short-term incentive plan will be reduced from $6.1 million to $3.5 million per year.

    Redstone will receive an annual award of stock options having a grant-date value of $3 million. He will also receive an annual award of performance share units (PSU’s) with a grant-date target value of $3 million.