Report: Viacom Board to Meet on Settlement

Deal with Redstone to remove Dauman may be discussed
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Viacom’s board could meet as early as Thursday night to discuss a settlement that could end the lawsuits between the media company and controlling shareholder Sumner Redstone and result in CEO Philippe Dauman leaving Viacom, according to reports.

Reuters says the board was expected to meet Thursday night, but that the timing could change.

There have been other media reports that the on-again off-again talks between Redstone’s representatives and the Viacom board had come closer to an agreement.

Related: Redstone’s Company Blasts Viacom Results

A Viacom spokesman had no comment.

Former Viacom chairman Redstone’s family holding company National Amusements owns 80% of the voting stock in Viacom and CBS. Over the past few months, Redstone has attempted to remove and replace Dauman and other Viacom directors from the board of National Amusements, the board of Viacom and as trustees of the trust that will control the assets when the 93-year-old  Redstone dies or is incompetent to make business decisions.

Related: Redstone Granddaughter Blasts Real Estate Sale

Dauman and some of the other Viacom directors have contested the ejections in courts in Massachusetts and Delaware claiming that Redstone is incompetent and under the undue influence of his daughter Shari Redstone. Shari Redstone is a director of Viacom, CBS and National Amusements.

For the past year, Viacom has been one of the poorest performing media companies. Ratings fell at many of its cable networks, which include MTV, Comedy Central and Nickelodeon, and ad revenue has fallen, putting pressure on earnings and sending Viacom stock to new lows.

Related: Viacom CEO Says Trials Will Lead to Resolution

Since the battle for control started, the prospect of new management at Viacom has made the company’s stock perk up.

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