Sumner Redstone Says Viacom Missed MySpace But Not Interested in Facebook

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Viacom's Redstone Rules out Bidding for Facebook (Reuters)

Summary: In a candid televised interview Viacom (VIA) chairman Sumner Redstone (pictured) disclosed the reason he fired the company's well-liked CEO Tom Freston in early September: Redstone apparently ordered Freston to purchase MySpace for the $500 million the company was asking. After Freston balked, Rupert Murdoch of News Corp. (NWS) stepped in and picked up the company for $580 million. Since then, MySpace's valuation has nearly tripled to around $1.5 billion. "It was a humiliating experience," Redstone said of losing the deal to Murdoch. Still, Redstone has no plans to pick up Facebook, another popular social site currently up for sale, claiming the billion dollar asking price is too high. For now, Viacom aims to purchase early stage Internet businesses. "We would look at companies on the cutting-edge of greatness and (where) we could make it grow," Redstone said.
Related links: Full article • Viacom Q2 2006 Earnings Conference Call Transcript • Redstone Shakes Up Viacom -- Shares Respond Downward • Freston's Firing a Big Step Backwards for Viacom
Potentially impacted stocks and ETFs: Yahoo (YHOO), Microsoft (MSFT)

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