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Viacom: Down 21.5% with succession questions still circling

Feb. 09, 2016 9:13 PM ETViacom Inc. (VIA-OLD) StockVIA-OLD, VIABBy: Jason Aycock, SA News Editor2 Comments
  • Viacom (VIA -17.8%, VIAB -21.5%) B shares finished at their lowest point in more than five years after disappointing Q4 earnings and a conference call that failed to inspire confidence.
  • In a tense call, Philippe Dauman -- now CEO and executive chairman, after the resignation of Sumner Redstone -- said the facts were "distorted and obscured by the naysayers, self-interested critics and publicity seekers."
  • The succession drama has raised questions that haven't been entirely settled now that Dauman has two key roles, but Redstone still has the ownership of 80% of voting shares. Richard D. Greenfield, who filed a shareholder lawsuit last month, questions whether Redstone's resignation letter is valid.
  • "We suppose somebody drafted it for him and signed it for him," he tells CTFN. "According to Manuela Herzer (Redstone’s ex-girlfriend who is fighting her removal as his designated health care agent), he is in no position to sign anything."
  • The suit is targeting lucrative compensation for Redstone and Dauman even as the stock has tumbled. Viacom's been “pushing (Redstone) an awful lot of money to be sitting in a bed. We are seeking repayment of that money. It is in the millions of dollars.”
  • Previously: Viacom -15% to new low after poor earnings, tense call (Feb. 09 2016)
  • Previously: Viacom -4.8% as ad sales, movie revenues decline (Feb. 09 2016)

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