Redstone family reaffirms opposition to Paramount sale

Viacom Inc.'s plan to sell a stake in Paramount Pictures was set back again Friday when the Redstone family reaffirmed its opposition.

Sumner Redstone and his daughter, Shari Redstone, are against the proposed sale of a 49 percent stake in the studio because that would complicate other possible transactions _ such as a sale of all of Viacom.

Despite the boardroom opposition, Viacom CEO Philippe Dauman has been busy trying to make a deal. Dauman, according to knowledgeable people, has been negotiating with Chinese entertainment giant Dalian Wanda Group.

Dauman hopes that fetching a big price for the studio interest _ perhaps as much as $5 billion _ would improve Viacom's sagging stock price.

But the Redstones _ through their investment vehicle, National Amusements Inc. _ said such a sale would be ill-advised at a time when Viacom's management and board is in flux. They also don't want Viacom to sell off part of Paramount while the studio is at a low point.

"Paramount is one of Viacom's most valuable assets. Any short-term benefits that might result from a Paramount transaction would be outweighed by the severe negative impact on Viacom's future strategic flexibility to best capitalize on this important asset," National Amusements said Friday in a statement.

Last month, National Amusements moved to dump Dauman and four other Viacom board members _ although that effort was put on hold to allow a judge in Delaware to determine whether the board changes were valid.

The decision on Paramount "should not be made by individuals who may be leaving the board shortly," the National Amusements statement said.

National Amusements holds nearly 80 percent of the voting shares of Viacom and CBS Corp., giving the firm great sway in corporate decisions.

Viacom accused the Redstones of meddling.

"It is beyond understanding that National Amusements would continue in its attempts to interfere with a potential transaction that would create a unique opportunity to drive long-term value for both Paramount and Viacom, without even waiting for the facts," a Viacom spokesman said Friday.