Viacom halves dividend; interim CEO to depart
Viacom (VIAB) on Wednesday cut its quarterly dividend in half and said Tom Dooley, its interim chief executive officer, was leaving the company.
In its first such move since it separated from CBS (CBS) in 2006, the media conglomerate chopped the dividend to 20 cents a share and would look to debt markets to boost liquidity, Viacom said in a statement.
The company is no longer seeking a minority investor for Paramount Pictures as it reviews its options.
The owner of the cable network MTV, Nickelodeon and Comedy Central, also projected fiscal fourth-quarter earnings significantly beneath expectations. Viacom also said it would incur a $115 million “programming impairment charge” for the period due to an unreleased film.
Last month, controlling shareholder Sumner Redstone and his daughter Shari booted CEO Philippe Dauman following a legal battle for control of the company.
“While there is more work to do, the actions announced today are an important first step towards realizing the value of Viacom’s exceptional assets and positioning the company for the future,” said Shari Redstone, vice chair of the board.