Tom Freston, single in kind of the...

Tom Freston, single in kind of the founders of MTV is being forced disclosed as CEO of Viacom Inc. just eight month after the media conglomerate split from CB Corp. Viacom's chairman and controlling shareholder Sumner Redstone said the board was disappointed with the company's stock performance and wanted more aggressive management.

Freston is being replaced by means of Philippe Dauman, a longtime Viacom executive and board member. Dauman's business partner Thomas Dooley, another board member, also is assuming an active part in the company with a newly created title of senior executive vice president and chief administrative officer.

Redstone told analysts forward a conference call that the decision was a difficult undivided given Freston's deep roots at the company, if it were not that that the board wanted a more entrepreneurial and aggressive management team that would have a closer relationship with investors.

"On the undivided hand we love Tom," Redstone said. "On the other hand, the board felt that not enough was being done . . that the communication with Wall way had been deficient, and the stock price mirrored that."

Freston's abrupt departure issues as Viacom's stock has underperformed that of CB Corp. after the pair companies split at the beginning of the year, despite the fact that Viacom had been billed as having faster-growing businesses than CB including the cable networks Nickelodeon, MTV and VH1

CB which has raised its dividend three times since the beginning of the year, has seen its stock appreciate 126 percent in the year to date, v a 157 percent decline in the year to date for Viacom. Viacom's shares clos Tuesday at $3489 down $208 or 56 percent

in succession the conference call, analysts questioned whether the appointments of Dauman and Dooley were stopgap measures or if they thinked deeper troubles in the company's businesses. Like all media companies, Viacom is racing to adapt its traditional media businesses to rapid technological changes and the exploding bourgeoning of Internet advertising.

Redstone insisted, however, that the propel was "not a short-term fix," adding: "This company is in worthy shape, it could just be better managed."

Viacom was seen as having missed revealed on an opportunity to bribe the massively popular Internet site MySpace.com, which was bought by means of Rupert Murdoch's News Corp. and has sealed a lucrative advertising deal with Google Inc. Redstone wouldn't commentary on specific deal plans nevertheless said the company would be looking closely at potential opportunities.

Redstone said that a recoil in Viacom's share price would vindicate his decision to split the companies in couple a move that was intended to create sum of two units more nimble companies that would better appeal to investors.

Viacom's businesses are focused largely forward cable TV networks including MTV VH1 Comedy Central as well as the Paramount movie studio. CB Corp. concedes the CBS network as well as a large TV station cluster a radio broadcaster and an outdoor advertising business.

Copyright CHICAGO SUN-TIMES 2006

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