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Business

Viacom troubles deepen with profit warning

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Opening sequence

Business

Viacom troubles deepen with profit warning

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COMING UP:Viacom troubles deepen with profit warning

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00:00:00
>> We gotta go now. We only have a 30-second window.>> A box office flop providing another plot twist in the battle for Viacom. The media conglomerate behind the Paramount film studio doing something Friday it hasn't done since the financial crisis. Issue a profit warning. Its latest installment of Teenage Mutant Ninja Turtles falling so flat on its back that Viacom is having to cut earning projections.
00:00:26
And that's not all. A streaming media deal failing to close, feeding into a bigger problem, executives are preoccupied by a battle between the board and the company's largest shareholder, 93-year-old, Sumner Redstone. Reuters media correspondent Jessica Toonkel.>> As Reuters reported exclusively yesterday, Sumner Redstone removed Philippe Dauman and four other directors from the board.
00:00:50
All of this, on top of the other lawsuits going on, is causing concern at the company. You've had talent leave, and there's a big concern of whether the company can perform and the operations can continue performing on a certain level with all this distraction going on.>> While the entire Viacom Universe is underperforming media rivals, ratings are down at cable channels Comedy Central, BET, and MTV.
00:01:13
The weakness at Paramount and a possible sell is a particular point of contention between Redstone and his former protege current CEO Dauman.>> There have been reports that said that Sumner is just against the whole sale. He fought to get this asset from Barry Diller years ago and it's a pride thing.
00:01:32
My sources have told me, it's about the process. He doesn't like the way that Dauman has just kind of come out and tried to sell the movie studio. He doesn't think he's getting the best value for it.>> Redstone's meddling seems to be going over well with investors despite Viacom's profit warning.
00:01:49
Shares held onto gains Friday, largely on the hope Dauman is one step closer to being pushed out.