WHO CARES? I’M RICH
Paramount $: meh
Ousted Viacom Chief Executive Philippe Dauman is throwing in the towel on a partial sale of Paramount Pictures and, by his own admission, leaving a potential $14 million on the table.
Terms of Dauman’s settlement with controlling shareholder Sumner Redstone called for him to pitch the sale of a sizable minority stake in Paramount before he officially exits as Viacom’s non-executive chairman and a director on Sept. 13.
The pitch would have been made before the expanded Viacom board — numbering 16 directors until Dauman leaves — and subject to unanimous approval before its acceptance.
But sources told The Hollywood Reporter on Wednesday that, rather than mount a spirited defense, Dauman has opted to outline his proposal in a mundane memo that is unlikely to persuade anyone.
The sale he had in mind, to China’s Wanda Group, “will essentially unlock value of approximately $10 or more per Viacom share,” Dauman boasted at an investment conference in June.
Not that the executive — who ended a year-long battle with Viacom’s controlling Redstone family by agreeing to step down as CEO on Aug. 20 — needs the extra cash.
After negotiating a $72 million exit package, Dauman went on a stock-selling spree, reducing his Viacom holdings by 1.4 million shares.
Only 999 shares remain, all in a 401(k) plan.
The stock sales through Aug. 29 fattened Dauman’s coffers by an additional $59.4 million in eight days.
So if Dauman really believed in the extra boost promised by a sale of Paramount, he’s not sticking around to claim the additional $14 million it would have delivered.
BTIG analyst Rich Greenfield said it serves as Dauman’s admission that few directors — and especially Redstone — are interested in selling the studio.
“It’s an admission he’s no longer with the company, and the stock sales suggest he no longer wants to be associated with it,” Greenfield said.
The analyst added that the split frees Viacom — also home to cable channels MTV, Nickelodeon and Comedy Central — to pursue its future free of complicated distractions.
Viacom fell 1.3 percent, to close at $40.34, Wednesday.