Viacom Reaches Settlement In Legal Dispute; CEO Philippe Dauman Resigns

(RTTNews) - Entertainment content company Viacom Inc. (VIAB, VIA) on Saturday announced an agreement with National Amusements Inc. or NAI, members of the Redstone family and related parties, settling all disputes among them.

Under the terms of the settlement, Philippe Dauman resigned immediately as President and Chief Executive Officer. He will continue as non-executive Chairman until September 13.

Thomas Dooley, currently Viacom COO, was named Interim President and CEO through September 30, 2016, the end of Viacom's fiscal year. By this time, the Board, working with Dooley, will make a decision on succession plans.

The new Board will then select a successor for Chairman. Sumner Redstone will remain Chairman Emeritus and Shari Redstone will remain Non-Executive Vice Chair. Once Dauman departs, the Board will consist of 15 directors.

Dooley has been Chief Operating Officer of Viacom since 2010. He joined the company in 1980.

The settlement has been unanimously approved by the Boards of Directors of Viacom and NAI, under which all lawsuits among them will be terminated, and Viacom will create an expanded Board of Directors to include the five Viacom directors elected in June by NAI.

The company noted that Dooley will work closely with the new Board to develop a financial and strategic plan to position Viacom for future success.