Viacom Inc slashed its quarterly dividend by 50 per cent on Wednesday and said interim Chief Executive Tom Dooley would leave the company.
Viacom also said it had ended the process of seeking a minority investor for Paramount Pictures as it considers all options available to the company.
The media company, which owns cable networks Nickelodeon, MTV and Comedy Central, halved its dividend to 20 cents per share from 40 cents as it looks to pay down debt.
The move marks the first time the New York-based company has cut its payout since it split from CBS Corp in 2006.
Viacom has been struggling to improve ratings as more younger viewers go online to watch their favorite shows.
Last month, controlling shareholder Sumner Redstone, and his daughter Shari Redstone, won the battle for control of Viacom, resulting in the departure of Viacom's former CEO Philippe Dauman.
Dauman had long resisted cutting the dividend.
The decision to cut the dividend came after a Viacom board meeting, which included new directors brought on by the Redstones, as well as existing directors.
The Redstones had also opposed Dauman's plan to sell a 49 per cent stake in Paramount. Dauman saw the sale as a way to unlock value for shareholders, who have seen their shares plummet in value in recent years.
Analysts had valued the stake at about $4 billion.
Viacom's board has hired Morgan Stanley and LionTree Advisors to review its capital structure as it looks for ways to shore up finances in the face of falling advertising sales.
Viacom said it expects adjusted profit for the fourth quarter to be between 65 cents and 70 cents per share. Analysts on average had expected 89 cents per share, according to Thomson Reuters I/B/E/S.
Dooley will stay on through Nov. 15 to facilitate an "orderly transition".
Viacom Inc slashed its quarterly dividend by 50 per cent on Wednesday and said interim Chief Executive Tom Dooley would leave the company.
Viacom also said it had ended the process of seeking a minority investor for Paramount Pictures as it considers all options available to the company.
The media company, which owns cable networks Nickelodeon, MTV and Comedy Central, halved its dividend to 20 cents per share from 40 cents as it looks to pay down debt.
The move marks the first time the New York-based company has cut its payout since it split from CBS Corp in 2006.
Viacom has been struggling to improve ratings as more younger viewers go online to watch their favorite shows.
Last month, controlling shareholder Sumner Redstone, and his daughter Shari Redstone, won the battle for control of Viacom, resulting in the departure of Viacom's former CEO Philippe Dauman.
Dauman had long resisted cutting the dividend.
The decision to cut the dividend came after a Viacom board meeting, which included new directors brought on by the Redstones, as well as existing directors.
The Redstones had also opposed Dauman's plan to sell a 49 per cent stake in Paramount. Dauman saw the sale as a way to unlock value for shareholders, who have seen their shares plummet in value in recent years.
Analysts had valued the stake at about $4 billion.
Viacom's board has hired Morgan Stanley and LionTree Advisors to review its capital structure as it looks for ways to shore up finances in the face of falling advertising sales.
Viacom said it expects adjusted profit for the fourth quarter to be between 65 cents and 70 cents per share. Analysts on average had expected 89 cents per share, according to Thomson Reuters I/B/E/S.
Dooley will stay on through Nov. 15 to facilitate an "orderly transition".
Viacom Inc slashed its quarterly dividend by 50 per cent on Wednesday and said interim Chief Executive Tom Dooley would leave the company.
Viacom also said it had ended the process of seeking a minority investor for Paramount Pictures as it considers all options available to the company.
The media company, which owns cable networks Nickelodeon, MTV and Comedy Central, halved its dividend to 20 cents per share from 40 cents as it looks to pay down debt.
The move marks the first time the New York-based company has cut its payout since it split from CBS Corp in 2006.
Viacom has been struggling to improve ratings as more younger viewers go online to watch their favorite shows.
Last month, controlling shareholder Sumner Redstone, and his daughter Shari Redstone, won the battle for control of Viacom, resulting in the departure of Viacom's former CEO Philippe Dauman.
Dauman had long resisted cutting the dividend.
The decision to cut the dividend came after a Viacom board meeting, which included new directors brought on by the Redstones, as well as existing directors.
The Redstones had also opposed Dauman's plan to sell a 49 per cent stake in Paramount. Dauman saw the sale as a way to unlock value for shareholders, who have seen their shares plummet in value in recent years.
Analysts had valued the stake at about $4 billion.
Viacom's board has hired Morgan Stanley and LionTree Advisors to review its capital structure as it looks for ways to shore up finances in the face of falling advertising sales.
Viacom said it expects adjusted profit for the fourth quarter to be between 65 cents and 70 cents per share. Analysts on average had expected 89 cents per share, according to Thomson Reuters I/B/E/S.
Dooley will stay on through Nov. 15 to facilitate an "orderly transition".
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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