Viacom And Sumner Redstone Reportedly Reach Settlement

(RTTNews) - Viacom Inc. (VIAB, VIA) reached an agreement ending a months-long legal dispute between Chief Executive Officer Philippe Dauman and controlling shareholder Sumner Redstone, paving the way for Dauman to leave the company, According to reports citing people familiar with the matter.

Chief Operating Officer Tom Dooley will serve as interim CEO through at least September 30, and could become permanent CEO, the reports said.

The settlement is a near-complete victory for the Redstones -- the 93-year-old billionaire and his daughter Shari. They control an 80 percent voting stake in Viacom through their private theater chain National Amusements Inc. Redstone and his daughter have been fighting to remove Dauman and fellow board member George Abrams from the company and a trust that will govern the family's holdings in Viacom and CBS Corp. after Sumner's death.

Dauman reportedly will become non-executive chairman until September 13, giving him an opportunity to present a proposal to sell a 49 percent stake in Paramount Pictures to the board.

As part of the deal, Viacom's board will expand with Redstone's five new appointees, including venture capitalist Kenneth Lerer and former Sony Corp. of America President Nicole Seligman. Three existing directors will leave after the next board meeting. Thomas May, one of the new appointees, is expected to become chairman, the Wall Street Journal reported.

Redstone appointees will assume leadership positions on the company's audit and compensation committee.