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Karmazin and Redstone have reportedly clashed at various times, but that tension had appeared to have been soothed when Viacom signed Karmazin to a new three-year contract last year Redstone said he regretted Karmazin's departure and wished him well before it merged with Viacom in 2000 Karmazin worked his way up through the ranks in the radio business, and became the head of CBS Corp In their new roles, Freston and Moonves will jointly oversee all of the operations of Viacom He also said the company would be making an announcement soon about its succession plans Two senior executives were named to replace Karmazin, MTV boss Tom Freston and CBS leader Leslie Moonves, the company announced Tuesday 87 in heavy trading on the New York Stock Exchange At Viacom's annual meeting two weeks ago, Redstone said he and Karmazin had never had a major disagreement "But for the time being we're committed to radio Karmazin did not elaborate on his reasons for leaving In a statement, he said that "After more than 20 years with the company, for personal and professional reasons, I have decided to leave Viacom and pursue other challenges Investors took the news of the management shakeup in stride Redstone said on the conference call that it was "extremely likely" that he would be succeeded by either Freston or Moonves as CEO He will work with the company's board to identify a new CEO and other senior executives before then However, the sudden loss of Karmazin is likely to disappoint many on Wall Street He also said Karmazin would stay on as a consultant for two months to help with the transition In a conference call with Wall Street analysts, Redstone said Karmazin left because of "frustration" with the company's sagging stock price and the lingering troubles at the company's radio division Even though Redstone has voting control of Viacom through a special supervoting class of stock, he made clear in his announcement that he was working with the company's board on the succession issue The company described the moves as part of a corporate succession plan under which Redstone will relinquish his role as CEO within three years They will run the company on a day-to-day basis and report to Redstone Imus broke the news of Karmazin's departure early Tuesday morning on a show broadcast by MSNBC Moonves has been chairman and chief executive of CBS since 2003 and joined CBS in 1995 as president of its entertainment operation " Karmazin Resigns As President of Viacom Jun 1, 10:29 AM EST Mel Karmazin resigned suddenly as president and chief operating officer of Viacom Inc In late morning trading, Viacom's widely held "B" class shares were off 2 cents at $36 "There is no sacred cow," Redstone said , owner of CBS, MTV and Nickelodeon, as the media giant seeks to find a successor for its 81-year-old chairman and CEO, Sumner Redstone " Freston has been chairman and CEO of the MTV Networks unit since 1987 Redstone suggested that Viacom's new management team would consider getting rid of the radio business, saying the company would have a "hard look" at the radio operation as well as other assets In a note to investors, Merrill Lynch analyst Jessica Reif Cohen called Karmazin's departure "a very significant negative" factor for the company since Karmazin was "an extremely talented operating executive Investors have been pressing Viacom to clarify its plans for succession, especially given Redstone's age " Karmazin worked in radio for much of his career, and is known to be close to several of Viacom's leading radio personalities including Howard Stern and Don Imus Karmazin was highly regarded in the industry and on Wall Street for his leadership of Viacom 3 million, the highest gross on Broadway 30, the show, which had faltered a bit at the box office, has bounced back to sold-out status Since the two stars rejoined the Mel Brooks musical Dec No replacements have been named yet for Nathan Lane and Matthew Broderick in "The Producers," but the two stars definitely will leave the hit Broadway musical April 4 Lane, Broderick to Leave 'The Producers' Feb 26, 6:58 PM EST They're still looking It is doing boffo business during what is generally regarded as the leanest time of the year for ticket sales " Grammer, however, decided to do a television movie instead The producers of "The Producers" declined comment Thursday, although John Barlow, a spokesman for the show, said casting is proceeding and when the new performers are signed, they will be announced Several names have been mentioned to replace Lane as rapscallion producer Max Bialystock, including Kelsey Grammer of television's "Frasier Last week, for example, the musical grossed more than $1 " The producers reportedly were also talking to comedian Jon Lovitz, a former regular on "Saturday Night Live |
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