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Tag: Sumner Redstone

  • Viacom’s Sumner Redstone to undergo psychiatric exam in competency suit

    Viacom’s Sumner Redstone to undergo psychiatric exam in competency suit

    MUMBAI: The woes of the 92-year old chairman of Viacom – Sumner Redstone’s only seem to be increasing with his ailing health.

     

    After a shareholder slapped the company with a legal suit over Redstone’s high pay recently, a California judge has now ruled that Redstone will be examined by a psychiatrist hired by Redstone’s former girlfriend Manuela Herzer.

     

    Herzer had challenged Redstone’s “mental capacity” in a lawsuit against her removal as his healthcare agent in October last year.

     

    According to a report in the LA Times, Los Angeles County Superior Court Judge David J. Cowan ruled that Dr. Stephen Read, a psychiatrist selected by Herzer and her attorneys, will be allowed to conduct an hour-long examination of Redstone.

     

    Judge Cowan allowed Redstone’s speech pathologist and nurse to be present during the examination. He also said that the examination could not be videotaped.

     

    “We are gratified that Judge Cowan struck an equitable balance that assures our client has a fair opportunity to prove that her beloved Sumner was not competent when the attorneys had him remove her as his health caregiver,” the LA Times quoted Herzer’s attorney Pierce O’Donnell as saying.

     

    However, Judge Cowan denied a request from Herzer and her lawyers that Redstone provide sworn testimony in a deposition.

     

    Redstone’s attorney Gabrielle Vidal was quoted in media reports as saying, “We are gratified that the Court continues to reject Ms. Herzer’s increasingly desperate and disingenuous attempts to depose Mr. Redstone.”

     

    Post Herzer, Viacom CEO Philippe Dauman was made in charge of making healthcare decisions for Redstone.

  • Viacom’s Sumner Redstone to undergo psychiatric exam in competency suit

    Viacom’s Sumner Redstone to undergo psychiatric exam in competency suit

    MUMBAI: The woes of the 92-year old chairman of Viacom – Sumner Redstone’s only seem to be increasing with his ailing health.

     

    After a shareholder slapped the company with a legal suit over Redstone’s high pay recently, a California judge has now ruled that Redstone will be examined by a psychiatrist hired by Redstone’s former girlfriend Manuela Herzer.

     

    Herzer had challenged Redstone’s “mental capacity” in a lawsuit against her removal as his healthcare agent in October last year.

     

    According to a report in the LA Times, Los Angeles County Superior Court Judge David J. Cowan ruled that Dr. Stephen Read, a psychiatrist selected by Herzer and her attorneys, will be allowed to conduct an hour-long examination of Redstone.

     

    Judge Cowan allowed Redstone’s speech pathologist and nurse to be present during the examination. He also said that the examination could not be videotaped.

     

    “We are gratified that Judge Cowan struck an equitable balance that assures our client has a fair opportunity to prove that her beloved Sumner was not competent when the attorneys had him remove her as his health caregiver,” the LA Times quoted Herzer’s attorney Pierce O’Donnell as saying.

     

    However, Judge Cowan denied a request from Herzer and her lawyers that Redstone provide sworn testimony in a deposition.

     

    Redstone’s attorney Gabrielle Vidal was quoted in media reports as saying, “We are gratified that the Court continues to reject Ms. Herzer’s increasingly desperate and disingenuous attempts to depose Mr. Redstone.”

     

    Post Herzer, Viacom CEO Philippe Dauman was made in charge of making healthcare decisions for Redstone.

  • Viacom’s Sumner Redstone & Philippe Dauman see compensation cuts in 2015

    Viacom’s Sumner Redstone & Philippe Dauman see compensation cuts in 2015

    MUMBAI: Viacom Inc executive chairman Sumner Redstone received an almost 85 per cent cut in his pay for the 2015 fiscal in the light of his ailing health.

     

    Redstone, who is 92 years old, was paid $2 million in salary in Viacom’s 2015 fiscal year, according to a company filing Wednesday with the Securities and Exchange Commission. In comparison, he was paid $13 million in salary, bonuses and other perks in 2014.

     

    As was reported earlier by Indiantelevision.com, a shareholder has filed a lawsuit in which it was alleged that Redstone was incapable of continuing to run the company.

     

    On the other hand, Viacom CEO Philippe Dauman also saw a cut in his pay. In 2015, he received compensation of approximately $36.9 million, which was 17 per cent lower from his 2014 compensation of $44.3 million. On the other hand, Dauman drew a $4 million salary last year. His bonus dropped 30 per cent to $14 million as compared to $20 million in 2014.

     

    In a statement to explain the drop in compensation, Viacom said, “Mr. Redstone’s salary was unchanged in fiscal 2015. He became ineligible to receive a bonus beginning in fiscal 2015, and has not been eligible to receive an annual equity award since fiscal 2012.”

     

    However, the company did not give any specific reasons for the cut in pay and compensation.

     

    While Redstone is Viacom’s controlling shareholder, he holds about 80 per cent voting shares of Viacom and CBS Corp through his family investment vehicle – National Amusements.

     

    According to the lawsuit filed in Delaware by Viacom shareholder E.F. Greenberg, Redstone received $169 million in executive compensation for his role at Viacom from 2012 to 2014. In addition, he also receives compensation for his role as CBS executive chairman.

  • Viacom’s Sumner Redstone & Philippe Dauman see compensation cuts in 2015

    Viacom’s Sumner Redstone & Philippe Dauman see compensation cuts in 2015

    MUMBAI: Viacom Inc executive chairman Sumner Redstone received an almost 85 per cent cut in his pay for the 2015 fiscal in the light of his ailing health.

     

    Redstone, who is 92 years old, was paid $2 million in salary in Viacom’s 2015 fiscal year, according to a company filing Wednesday with the Securities and Exchange Commission. In comparison, he was paid $13 million in salary, bonuses and other perks in 2014.

     

    As was reported earlier by Indiantelevision.com, a shareholder has filed a lawsuit in which it was alleged that Redstone was incapable of continuing to run the company.

     

    On the other hand, Viacom CEO Philippe Dauman also saw a cut in his pay. In 2015, he received compensation of approximately $36.9 million, which was 17 per cent lower from his 2014 compensation of $44.3 million. On the other hand, Dauman drew a $4 million salary last year. His bonus dropped 30 per cent to $14 million as compared to $20 million in 2014.

     

    In a statement to explain the drop in compensation, Viacom said, “Mr. Redstone’s salary was unchanged in fiscal 2015. He became ineligible to receive a bonus beginning in fiscal 2015, and has not been eligible to receive an annual equity award since fiscal 2012.”

     

    However, the company did not give any specific reasons for the cut in pay and compensation.

     

    While Redstone is Viacom’s controlling shareholder, he holds about 80 per cent voting shares of Viacom and CBS Corp through his family investment vehicle – National Amusements.

     

    According to the lawsuit filed in Delaware by Viacom shareholder E.F. Greenberg, Redstone received $169 million in executive compensation for his role at Viacom from 2012 to 2014. In addition, he also receives compensation for his role as CBS executive chairman.

  • Q2-2015: Cable Networks props CBS revenue to 1% growth

    Q2-2015: Cable Networks props CBS revenue to 1% growth

    BENGALURU: CBS Corporation reported a one per cent growth in revenue to $3219 million in the quarter ended 30 June, 2015 (Q2-2015) as compared to the $3188 million in the corresponding year ago quarter.

     

    The company’s slight revenue growth was propped by a 19.2 per cent growth by its Cable Network segment, which is one of the four that contribute to the company’s numbers. Cable Networks segment reported revenue of $615 million in the current quarter as compared to the $516 million in the corresponding year ago quarter.

     

    The other three segments-Entertainment, Publishing and Local Broadcasting reported decline in revenue in Q2-2015 by 2.7 per cent, 5.7 per cent and 1.7 per cent respectively as compared to Q2-2014.

     

    Adjusted operating income was $641 million for the second quarter of 2015 compared with operating income of $730 million for the same prior-year period, reflecting higher investment in programming and digital distribution initiatives says CBS. Adjusted net earnings from continuing operations were $365 million for the second quarter of 2015 compared with net earnings from continuing operations of $418 million for the same prior-year period, as a result of the lower adjusted operating income.

     

    Company speak

     

    “CBS is at the center of the action during an extremely exciting time in media. We continue to succeed as a result of our world-class content, and Les and his team are positioning the Company to prosper in the quarters and years ahead,” said CBS executive chairman Sumner Redstone.

     

    “This quarter underscores the key steps we are taking to build out our long-term growth strategy. Central to that strategy is the progress we’re seeing with our fast-growing, non-advertising revenue sources, and there’s so much more to come as our investment in global content and new distribution pathways pays off. We are now on target to surpass our goal of $2 billion in retransmission consent and reverse compensation revenue by 2020 – thanks to a series of recent deals that reset the value of our content in the marketplace. Additionally, the launch of Showtime’s streaming service and the rapid expansion of CBS All Access are generating incremental revenue streams that will continue to grow in the years ahead,” added CBS president and CEO Leslie Moonves.

     

    “Of course, our premium content remains the cornerstone of our success, and I am confident this fall’s new primetime lineup will lead us to another victory next season. In fact, our schedule is so strong that we achieved solid pricing increases and the highest rates overall in the advertising upfront, and we also expect healthy increases in the scatter market throughout the year. As we lay the groundwork for a lucrative 2016 and beyond, we are also holding the line on costs, and we remain as focused as ever on investing in the best content, enhancing our strong financial position, and returning value to shareholders,” Moonves said.

     

    Overall numbers

     

    Revenues for Q2- 2015 increased, driven by affiliate and subscription fees that grew 28.3 per cent to $752 million as compared to the $586 million, driven by Showtime’s distribution of the highest-grossing pay-per-view boxing event of all time, as well as 40 per cent growth in retransmission revenues and fees from CBS Television Network-affiliated television stations. Advertising revenues decreased 2.6 per cent to $1594 million as compared to $1636 million in the corresponding quarter of last year. Content licensing and distribution revenues were down 9.7 per cent to $815 million in the current quarter from $903 million in Q2-2014, primarily reflecting lower domestic television licensing revenues, which were partially offset by higher international television licensing revenues.

     

    Segment numbers

     

    Entertainment

     

    CBS Entertainment segment comprises CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS Interactive, and CBS Films.

     

    Entertainment revenues were $1785 million for Q2- 2015 compared with $1835 million for the same prior-year period, primarily reflecting the timing of television licensing revenues. Advertising revenues were down two per cent because of a sale of an Internet business in China during Q1-2015 and the timing of certain sporting events on the CBS Television Network. Affiliate and subscription fees were up 50 per cent, driven by growth in rates.

     

    Entertainment operating income for Q2- 2015 was $262 million compared with $341 million for Q2-2014, reflecting lower revenues and higher investment in programming and digital distribution initiatives.

     

    Cable Networks

     

    Details of Cable Networks revenue comprising Showtime Networks, CBS Sports Network, and Smithsonian Networks have been mentioned above.

     

    Cable Networks operating income for the second quarter of 2015 of $220 million increased from $213 million for the same prior-year period, as the revenue growth was partially offset by higher programming costs for the pay-per-view boxing event.

     

    Publishing (Simon & Schuster)

     

    Publishing revenues for Q2- 2015 were $199 million compared with $211 million for the same prior year period. Digital revenues represented 24 per cent of Publishing’s total revenues for Q2-2015. Bestselling titles in the second quarter of 2015 included The Wright Brothers by David McCullough and Finders Keepers by Stephen King, as well as the continued success of the Pulitzer Prize-winning 2014 release, All the Light We Cannot See by Anthony Doerr.

     

    Publishing operating income of $25 million for the second quarter of 2015 increased nine per cent from $23 million in Q2- 2014, as the revenue decline was more than offset by lower production and distribution costs.

     

    Local Broadcasting

     

    Local Broadcasting comprises CBS Television Stations and CBS Radio.

     

    Local Broadcasting revenues of $654 million for Q2-2015 decreased two per cent from $665 million in the same prior-year period. The decline was the result of lower advertising revenues, including political spending from last year’s midterm elections. Growth in affiliate and subscription fees partially offset the decline. CBS Television Stations revenues were up one per cent, and CBS Radio revenues decreased five per cent.

     

    Local Broadcasting operating income for the second quarter of 2015 was down eight per cent to $198 million from $215 million for the same prior-year period, primarily reflecting the revenue decline.

  • CBS posts profit of $335 mn in fourth quarter

    CBS posts profit of $335 mn in fourth quarter

    MUMBAI: US media conglomerate CBS has recorded a profit in the fourth quarter from a year ago period.

    This included a major charge to write down the value of its television and radio businesses

    CBS reported net income of $335 million, or 43 cents per share, in the October-December period. A year ago, the company reported a loss of $9.14 billion, or $12 per share. That included a charge of $9.48 billion for the asset impairment.

    Operating income for the quarter is up 14 to per cent to $759.3 million. For the year revenues were $14.3 billion. This marked an increase of one per cent from the prior year, with increases of two per cent at television, eight per cent at outdoor and six per cent at publishing. This was partially offset by a decline of seven per cent at radio.

    For the year, television revenues increased by two per cent to $9.5 billion from 2005 primarily reflecting increases in television license fees and affiliate revenues partially offset by lower home entertainment and advertising revenues. Television license fees increased by 26 per cent primarily due
    to the 2006 availabilities of CSI: Miami, Frasier, Star Trek: Voyager and Without A Trace.

    This was partially offset by the absence of license fees from the prior year second- cycle cable renewal of Everybody Loves Raymond. Affiliate revenues increased eight per cent due to rate increases and subscriber growth at Showtime and the inclusion of the results of CSTV Networks since its acquisition in January 2006. Ad revenues decreased by one per cent from 2005 as higher political ad sales were more than offset by lower revenues from the absence of UPN and decreases at CBS Network.

    Home entertainment revenues decreased by 68 per cent principally due to the switch from self-distribution in 2005 to third party distribution in 2006.

    CBS executive chairman Sumner Redstone says, “CBS’ first year out of the gate was a great one. Our strong performance in the fourth quarter and full year of 2006 is the result of strategic vision and operational excellence. Leslie and his team are building our existing businesses to capitalise on the digital revolution and to position CBS for continued success well into the future.”

    CBS president and CEO Leslie Moonves says, “CBS’ fourth quarter results capped off a strong first year as a stand-alone company, Strong fourth quarter operating results at television, outdoor and publishing helped us surpass our key financial targets for the year.

    “Looking forward, we will continue to focus on running our core operations effectively; reshaping our portfolio into better-margin, higher-growth businesses; using the interactive opportunity to deepen and broaden our relationship with audiences; and receiving compensation for our content through retransmission consent agreements and new interactive platforms.

    ” I am confident that the company is well positioned to deliver long-term growth, strong cash flow, and increased value for our shareholders.”

  • 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 chairman Redstone sued by nephew

    Viacom chairman Redstone sued by nephew

    MUMBAI: US media conglomerate Viacom chairman Sumner Redstone has been sued by his nephew Michael Redstone. Michael has also named his own father in his suit.

    Media reports state that in the suit Michael says that both his uncle and father cheated him of a stake in the media conglomerate. Redstone accuses his uncle and father Edward of ‘self- dealing’, ‘breaches of fiduciary duties,’ and ‘unjust enrichment’ in buying back shares of National Amusements (NAI) the company that controls Viacom, CBS and Midway Games – at low prices.

    In response a spokeswoman for NAI said that the allegations are knowingly baseless regarding entirely proper transactions that occurred decades ago. NAI will therefore defend vigorously against what it terms as a meritless and frivolous lawsuit.

    Reports add that Michael Redstone is looking for money damages amounting to what the present value of the plaintiffs’ approximate 50 per cent share of National Amusements are worth today.

    Joining Michael Redstone in the suit are trustees of the trusts representing Sumner and Edwards’ children. The buybacks occurred in 1972 and 1984 and the company is estimated to be worth about $8 billion.

    It is the second suit recently filed against Redstone by a family member. Sumner Redstone’s son Brent filed a suit against his father earlier this year, claiming that he was entitled to a one-sixth interest in National Amusements, valued at more than $1 billion. No trial date has been set for that suit state reports.

  • CBS operating income up 4% to $646 million

    CBS operating income up 4% to $646 million

    MUMBAI: US media conglomerate CBS Corporation has reported results for the third quarter ended 30 September, 2006.

    CBS’ operating income rose by four per cent to $646 million led by television and outdoor. Net earnings from continuing operations went up by 26 per cent to $324 million.

    Revenues of $3.4 billion for the third quarter of 2006 were up slightly from the same quarter last year, as growth at outdoor and publishing was offset by a decline at radio, the shutdown of broadcaster and lower home entertainment revenues due to the switch from self-distribution in 2005 to third party distribution in 2006.

    For the nine months ended 30 September 30, 2006, revenues were $10.4 billion which marked an increase of one per cent from the same prior-year period, as growth at outdoor, television and publishing was partially offset by a decline at Radio. Results for the first nine months of 2006 reflected $24.0 million of expenses related to the UPN shutdown as well as the impact of stock-based compensation expense of $51.7 million versus $13.1 million for the nine months ended 30 September, 2005.

    For the quarter, television revenues of $2.2 billion decreased slightly from the prior year as growth in television license fee revenues and affiliate fees was more than offset by lower advertising and home entertainment revenues.

    Television license fees increased by seven per cent principally due to the domestic syndication sale of CSI: Miami and higher foreign syndication revenues. Affiliate fees increased six per cent due to rate increases and subscriber growth at Showtime and the inclusion of CSTV Networks since its acquisition in January 2006. Ad revenues decreased by three per cent primarily due to the shutdown of UPN in September of 2006 and the absence of the Primetime Emmy telecast in 2006, partially offset by strong political advertising sales at the television stations.

    Home entertainment revenues decreased by 35 per cent principally due to the switch from self-distribution in 2005 to third party distribution in 2006. The CW, a 50/50 per cent joint venture broadcast network with Warner Brothers Entertainment, was launched in September 2006 and has been accounted for as an equity investment in the third quarter of 2006.

    CBS executive chairman Sumner Redstone says, “CBS Corporation is right on track. “We remain committed to escalating shareholder value as we continue to drive our businesses forward. I am encouraged by the strategic vision Leslie and his team have put forth to capitalize upon the tremendous opportunities unfolding in the digital age.”

    CBS president, CEO Leslie Moonves says, “This was another strong quarter, posting solid profit increases in Television and Outdoor, generating significant free cash flow, and delivering the third of three dividend increases since the start of the year. In Radio, our plan to strategically reduce the number of markets in which we operate is well underway. We have signed agreements to sell 29 stations for a terrific value. We also believe that the growth we’re seeing in key formats such as Jack, Spanish and Talk bodes well for improved performance at Radio in 2007.

    ” Through innovative partnerships with YouTube, Yahoo, and many other key new media concerns, we’re aggressively pursuing opportunities that help us extend our world-class mass-appeal content to new digital platforms and channels and get paid for it. As a premier content company, we continue to be pleased with new technological developments that allow consumers to more easily enjoy our content, and extend our reach into the digital space.”

    The company expects to deliver low single-digit growth in revenues, mid single-digit growth in operating income and high single-digit growth in earnings per share.

  • Tom Cruise, Paramount Pictures to part ways

    Tom Cruise, Paramount Pictures to part ways

    MUMBAI: Paramount Pictures and actor Tom Cruise are set for a bitter break up of their 14-year old association. The decision was revealed by Viacom Inc. Chairman Sumner Redstone, when he told the Wall Street Journal, “As much as we like him personally, we thought it was wrong to renew his deal.”

    Reportedly, the Viacom chief was hinting at the movie star’s off-screen behaviour. The actor’s camp has taken strong offence of Redstone’s comments as Paula Wagner, Cruise’ longtime partner in his movie company Cruise/Wagner Productions, termed the outburst “offensive” and “undignified.”

    “Whatever remarks Redstone would make about Tom Cruise personally or as an actor have no bearing on what this business issue is. There must be another agenda that the studio has in mind to take one of their greatest assets and malign him this way,” Wagner has been quoted in a Reuters report.

    As reported, five Cruise starrers co-produced by Cruise/Wagner Productions — these include the Mission: Impossible series — have generated theatrical revenues totalling over $2 billion (1 billion pounds) worldwide during the past decade. Wagner claimed that Cruise-starrers accounted for about 15 per cent of the studio’s overall box office gross over that period.

    Wagner has also been quoted as saying that she and Cruise chose to leave the Paramount lot and establish a new venture financed through a private equity fund of $100 million.

    The Los Angeles Times had earlier reported on Paramount’s intention to slash the amount of money the studio pays for the production company. Paramount wanted Cruise/Wagner to cut the remuneration from $10 million to $2 million a year, it said.