You are here

Viacom to consider selling minority stake in Paramount film unit

Wednesday, February 24, 2016 - 07:14

viacom.jpg
Viacom Inc is considering selling a "significant" minority stake in its Paramount Pictures movie studio, Chief Executive Philippe Dauman said on Tuesday, sending the media company's shares up as much as 7 per cent.

[NEW YORK] Viacom Inc is considering selling a "significant" minority stake in its Paramount Pictures movie studio, Chief Executive Philippe Dauman said on Tuesday, sending the media company's shares up as much as 7 per cent.

Viacom has been approached by several strategic investors and has retained PJT Partners as its financial adviser, Mr Dauman, who replaced 92-year-old majority-owner Sumner Redstone as executive chairman earlier this month, said at a media conference.

Investors and analysts have been pushing for Viacom to consider selling all or a part of Paramount, as Viacom struggles with weak ad sales and few hit movie releases.

A report by an analyst at Bernstein on Monday valued a sale of all of Paramount at US$4 billion. It is unclear what size stake Viacom would sell.

sentifi.com

Market voices on:

The move by Paramount comes as investors have been pushing for a sale of all or part of the movie studio.

Investor Mario Gabelli, the second-largest owner of voting shares of Viacom, has said he would like to see the media company sell Paramount, suggesting that Alibaba Group Holding Ltd as a good partner. Similarly, activist investor SpringOwl Asset Management recently called for the company to consider a partnership for the movie studio.

Viacom shares were up 2.5 per cent at US$37.78 in afternoon trading after paring gains following Dauman's comments.

REUTERS

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom