Sumner Redstone removed Dauman and Viacom board member George Abrams from the Sumner M. Redstone National Amusements Inc Trust in May.
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The settlement, which resolves all disputes between NAI, members of the Redstone family, and related parties, will see all ongoing lawsuits terminated, and the creation of an expanded Viacom Board of Directors that, following Dauman’s departure, will consist of 15 members. At that time, the Board will choose a new Chairman, with the final decision on Dauman’s successor to be in place by the end of Dooley’s term as interim head of the company. DAUMAN will be given the chance to pitch the board on the sale of 49% of PARAMOUNT PICTURES, a move DAUMAN has aggressively championed and the REDSTONEs, SUMNER and his daughter, Vice Chair SHARI REDSTONE, have opposed. Viacom is searching for a new CEO, as Dooley will serve only until September 30. While the memo didn’t identify those members, National Amusements had previously sought to oust five existing Viacom directors – including Dauman and Abrams – and to replace them with its own candidates. Unanimous agreement by the Board will be required for approval of any such proposal. By strengthening Viacom’s governance and leadership, these changes will enable the Company to embark swiftly on a strategy that strengthens its position as an industry leader. Redstone has named a current National Amusements executive, general counsel Ted Jankowski, and family friend Jill Krutick as their replacements.
“Sumner and I have a more than 30-year history, side by side, building his media empire”, Dauman said in an earnings call in February. While referring to the allegation as “absurd”, Shari Redstone declared it was purely the decision of her father.
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Shares of Viacom have risen more than 40 percent since Redstone removed Dauman from the trust on May 20, a move that some investors saw as the first step in a change in management that could eventually lead to a sale of the media company. A spokesman for Redstone said the media mogul had been unhappy with the company’s performance and Dauman’s plans to sell a stake in Paramount Pictures. “Mr Redstone will continue to act in what he believes are the best interests of Viacom’s shareholders”.
