LOS ANGELES _ Paramount Pictures Chairman Brad Grey has finalized his exit from Viacom Inc. after 12 years managing the legendary movie studio that has struggled to produce box-office hits.
Grey's departure, which was telegraphed last week and announced Wednesday, takes effect immediately. It comes as Viacom's new chief executive, Bob Bakish, aggressively shakes up the management ranks of the New York media company controlled by ailing media mogul Sumner Redstone.
"It has been my privilege to be a part of Paramount's storied history, and I am grateful to Sumner Redstone for giving me this opportunity," Grey said in a memo to his staff at Paramount.
Grey said he would "remain engaged" during an unspecified period to ensure a smooth transition to new leadership.
Bakish said he would work closely with Paramount's leadership team, including Marc Evans (president of the motion picture group); Andrew Gumpert (the studio's chief operating officer); Amy Powell (president of Paramount Television); Megan Colligan (president of worldwide distribution and marketing) and Mark Badagliacca (chief financial officer) while the search for a new studio chief is underway.
Possible candidates to run the studio include former Warner Bros. film executive Jeff Robinov, former Fox film chief Jim Gianopulos and Rob Friedman, who left rival studio Lionsgate in September. Friedman spent about a decade of his career at Paramount, creating the specialty label Paramount Classics and rising to vice chairman before he left to run Summit Entertainment.
Grey had three years remaining on his employment contract. He had negotiated a five-year deal in the summer of 2015. Terms of his exit were not disclosed.
"It was simply time for a change in leadership," BTIG media analyst Rich Greenfield said in a report this week.
Several analysts, in recent years, have openly questioned whether Paramount needed new management. The studio lost $445 million in fiscal 2016 due to a string of box-office misfires, and Bakish said in an interview with the Los Angeles Times last month that the studio's management had become dysfunctional with top executives refusing to speak to each other.
In its glory years, Paramount produced such classics as "The Godfather," "Raiders of the Lost Ark," and "Terms of Endearment," but studio economics are more challenging these days.
In recent years, Paramount has been buoyed by such juggernauts as "Transformers" and "Star Trek," but it stumbled with the reboot of "Rings," "Zoolander" and "Teenage Mutant Ninja Turtles: Out of the Shadows." Last month's dud, "Monster Trucks," resulted in a $115 million writedown by Viacom months before the film was even released.
"Thanks to write-offs of films like 'Monster Trucks,' Paramount effectively lost $732 million from its new productions last year," Greenfield said. "Paramount would have been better off not even putting out movies."
Before joining Paramount, Grey was a top-flight Hollywood talent manager and partner at Brillstein-Grey Entertainment, enjoying producer credits on such hits as HBO's "The Sopranos" and "Real Time with Bill Maher."
He is known as a pre-eminent survivor who forged close relationships with the likes of Leonardo DiCaprio, Martin Scorsese, Brad Pitt and members of Viacom's controlling shareholder family, notably Redstone and his daughter, Shari Redstone, who is vice chairwoman of Viacom.
"Brad has overseen the production and distribution of some of Paramount's most celebrated hits, and more recently championed the successful relaunch of the studio's television division," Bakish said in a statement. "We are grateful for his 12 years of extraordinary service and wish him every continued success."
Viacom's shares are trading at their highest levels since July, amid a ferocious boardroom power struggle that ended with the ouster of longtime chief executive Philippe Dauman. Bakish was named permanent head of Viacom in December.
Viacom shares closed down less than 1 percent, or 19 cents, to $44.51 on Wednesday.
"Paramount has produced some of the most recognizable and cherished films in Hollywood, making it a key part of Viacom's history, and our future," Bakish said. "I couldn't be more excited by our early plans to reenergize the slate, more deeply integrate the studio and networks, and make the most of our incredible assets."
.png?w=600)
