Viacom In Talks To Sell Paramount Minority Stake

(RTTNews) - U.S. media conglomerate Viacom Inc. (VIAB, VIA), Tuesday said it is in talks to sell a minority stake in its film division Paramount Pictures.

CEO Philippe Dauman, during an investment conference, said, "We have received indications of interest from potential partners seeking a strategic investment in Paramount Pictures and I have decided to pursue discussions with a select group of potential investors."

The company has hired Paul Taubman's PJT Partners as a financial advisers to help with the discussions, Dauman said at the Jefferies Media & Communications Conference in New York. The company aims to close the deal by the end of the third quarter.

Dauman said the proceeds from the deal would be used to lower Viacom's debt, including "a near-term maturity that we have." It also could be used to pursue "operational and strategic opportunities that we might have and, of course, return of capital to our shareholders," Dauman added.

"In this time of change and enormous opportunity in our industry, a partnership will bring significant benefit to Paramount and Viacom, both strategically and financially, provide new opportunities for Paramount's employees and talent, and enhance long-term value for all Viacom shareholders," Dauman said.

Investors have been pushing Viacom to consider selling at least a stake in Paramount, as Viacom continues to struggle with poor ad sales and weak movie business. Paramount, which is one of the six biggest film studios in the U.S., only had a 6 percent movie market share in 2015.

VIA is currently trading at $41.70, up $1.10 or 2.71%, on the Nasdaq.