Report: Redstone, Karmazin at odds?
By CBS.MarketWatch.com
Last Update: 1:17 AM ET Jan. 20, 2003
NEW YORK (CBS.MW) -- Comments attributed to Viacom Chairman Sumner Redstone may suggest President Mel
Karmazin would have to accept a reduction in his powers if he renews his contract, according to a published report.
A story in the online edition of the Wall Street Journal reported that Redstone, 79,
has recently assured investors he wants Karmazin to stay with the company (VIA: news, chart, profile) when his contract
expires next year, but that comments Redstone made in an interview are sending a mixed message.
The Journal report stated that in an interview, Redstone was clear that Karmazin would have to accept a reduction in his
existing powers and that Karmazin has said in the past that was unacceptable.
But, the report stated, Redstone insisted he wants Karmazin to remain with Viacom, and quoted Redstone as saying he
would "lean over backwards to have him stay... I'm optimistic that he will stay."
Viacom representatives could not be reached for comment on the report. The Journal stated Viacom spokesman said
Karmazin had no comment.
Under the terms of Viacom's acquisition of CBS in 2000, Redstone remained CEO but Karmazin, 59, has operating control
until May of this year. Until that time, Redstone could not change the makeup of the board or fire Karmazin without the
support of 14 of the board's 18 members, the Journal report noted.
Viacom owns a significant stake in MarketWatch.com, the publisher of this report. Viacom shares slipped 13 cents on
Friday to close at $41.26. |
