That’s Sponge biz
Viacom CEO dances, NAI wields hook
Sumner Redstone’s National Amusements Inc. seized on Viacom’s latest lackluster results to call for new leadership at the entertainment giant.
While Viacom’s profit tumbled 29 percent, the results weren’t as bad as some feared and the company managed to beat lowered expectations for its top and bottom line.
Nonetheless, NAI hammered away at Chief Executive Philippe Dauman and Viacom’s “failed management” shortly after the company released results on Thursday morning.
“In recent years, the company’s senior management has overseen a steep erosion of revenue growth, earnings, operating performance, financial capacity and shareholder returns— with Viacom ranking at or near the very bottom of in- dustry peers across many of these critical metrics,” NAI said in a statement.
The volley was the latest in an already pitched battle between Dauman and NAI, which holds Redstone’s stakes in Viacom and CBS.
The CEO is legally challenging NAI’s bid to oust him from its board and that of Viacom, as well as a family trust that will eventually control Redstone’s empire. Dauman claims the 93-yearold mogul lacked the men- tal capacity to orchestrate the boardroom coups and that he’s being unduly influenced by his daughter, Shari Redstone.
Viacom identified Shari as being behind NAI’s critical response to its financial results and called it “unfortunate that one of our directors feels the need to try to damage the company.”
Dauman acknowledged that the legal battle is a “distraction” but insisted he was not “deterred from pursuing strategic initiatives,” including his plan to sell a 49 percent stake in the Paramount film studio.
Dauman also hailed the bringing of “The SpongeBob Musical” to Broadway as another promising initiative — one that would “revitalize” the 17-year-old property.
Viacom stock fell 1 percent on Thursday to close at $43.56 per share.