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Investors took the news of the management shakeup in stride Imus broke the news of Karmazin's departure early Tuesday morning on a show broadcast by MSNBC 52 in heavy trading on the New York Stock Exchange Karmazin worked his way up through the ranks in the radio business, and became the head of CBS Corp " Redstone, speaking on the conference call with Wall Street analysts, said Karmazin left because of "frustration" with the company's sagging stock price and issues related to the company's radio division, which has been struggling 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 media conglomerate that owns CBS and MTV " 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 However, he also acknowledged that Karmazin did not discuss his decision to resign with Redstone directly " While Viacom will suffer a loss of talent with Karmazin's departure, the moves help clarify the company's succession strategy, a topic that investors have been pressing the company about Moonves has been chairman and chief executive of CBS since 2003 and joined CBS in 1995 as president of its entertainment operation However, the sudden loss of Karmazin is likely to disappoint many on Wall Street Karmazin was highly regarded in the industry and on Wall Street for his leadership of Viacom In a separate conference call with reporters, Redstone parried several other questions about the reasons for Karmazin's departure "Mel was frustrated about something â€â€? I hope it wasn't about me Redstone stressed that no one at Viacom had asked Karmazin to resign On the call, Redstone dimissed peristent concerns that he had a rocky relationship with Karmazin before it merged with Viacom in 2000 Instead, Redstone said he learned of Karmazin's decision to resign through another executive, whom he did not name Given years of rumored frictions between Redstone and Karmazin, it was not clear that Karmazin, who is 60, would eventually succeed Redstone " Redstone said he regretted Karmazin's departure and wished him well He said in a brief statement that "for personal and professional reasons, I have decided to leave Viacom and pursue other challenges He was replaced by two senior Viacom executives, CBS head Leslie Moonves and MTV chief Tom Freston, the company announced Tuesday Redstone, speaking in a conference call with Wall Street analysts, said it was "extremely likely" that he would be succeeded by either Freston or Moonves Investors have been pressing Viacom to clarify its plans for succession, especially given Redstone's age He also said Karmazin would stay on as a consultant for two months to help with the transition "There is no sacred cow," Redstone said Redstone agreed to step down as CEO within three years and to designate a successor some time before then In afternoon trading, Viacom's widely held "B" class shares were off 37 cents at $36 "He just decided he was better off going in another way Freston has been chairman and CEO of the MTV Networks unit since 1987 " Redstone said 2 executive at Viacom Inc The moves clear the way for either Freston or Moonves to succeed Sumner Redstone, who is 81 years old, as CEO 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 Karmazin Resigns As Viacom President Jun 1, 3:10 PM EST Mel Karmazin, one of the most highly regarded executives in the media industry, resigned suddenly as the No "But for the time being we're committed to radio He also said Karmazin had been in the running as a candidate to succeed him as CEO Karmazin did not return calls to his office for comment on his departure 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 The video for the title track of a new album shows Madonna wearing military garb next to dancers in camouflage on a fashion runway com/ Records will be releasing Madonna's new album April 22 Madonna Pulls Anti-War Video for 'Life' Apr 1, 8:44 AM EST Madonna has decided to withdraw the violent, anti-war video for her new single "American Life" out of respect for the troops fighting in Iraq madonna â€â€?â€â€?â€â€? On the Net: Madonna Web Site: http://www The video also shows Madonna trapped in a bathroom stall, where she uses a knife to carve "protect me" on the wall In a statement posted on her Web site Monday, the singer said the video was filmed before the war started and was not appropriate to air at this time "Due to the volatile state of the world and out of sensitivity and respect to the armed forces, who I support and pray for, I do not want to risk offending anyone who might misinterpret the meaning of this video," Madonna said Warner Bros The video was scheduled to premiere on VH-l on Friday At one point, a grenade is thrown in the direction of a lookalike of President Bush The single "American Life" has just been released to radio Scenes are intercut with images of war |
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