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Breaking News from CNBC’s David Faber: Viacom Board Will Meet Tomorrow to Elect a New Chairman – Sources

WHEN: Today, Wednesday, February 3rd

WHERE: CNBC's "Closing Bell"

Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.

KELLY EVANS: WELCOME BACK. WE HAVE MORE BREAKING NEWS. THIS TIME ON VIACOM SPECIFICALLY. DAVID FABER JOINS US. WHAT'S HAPPENING DAVID?

DAVID FABER: WELL, OF COURSE, AS PEOPLE MIGHT EXPECT, WHEN YOU SEE MR. REDSTONE RESIGN AS THE CHAIR OF CBS, YOU IMMEDIATELY WONDER WHETHER IN FACT HE ALSO IS GOING TO RESIGN AS THE CHAIRMAN OF VIACOM AND THAT DOES APPEAR TO BE THE CASE. MY SOURCES INDICATE THAT VIACOM'S BOARD WILL BE MEETING TOMORROW, KELLY, TO ELECT A NEW CHAIRMAN. THEY HAVE NOT YET DONE SO, BUT THAT IS THE EXPECTATION THAT THE MEETING TOMORROW WILL TAKE PLACE, OF COURSE, AND THAT MR. REDSTONE WILL BE REPLACED AS THE EXECUTIVE CHAIRMAN OF VIACOM AS WELL. UNCLEAR WHO WILL TAKE HIS JOB, AS YOU ALL KNOW, PHILIPPE DEMONDAY IS THE CEO OF THE COMPANY, BUT IT'S NOT CLEAR THAT HE WILL NECESSARILY STEP UP TO THE CHAIRMAN ROLE AT VIACOM. CERTAINLY WANT TO TRY AND FIND OUT MORE ABOUT THAT. AND PERHAPS NO BIG SURPRISE HERE, THAT MR. REDSTONE IS DOING THIS. THERE'S BEEN A LOT OF QUESTIONS ON A CORPORATE GOVERNANCE FRONT FOR SOME TIME AS TO WHY AND WHETHER HE REALLY SHOULD BE REMAINING AS EXECUTIVE CHAIR OF THESE TWO COMPANIES. AS I REPORTED, WHILE HE IS CERTAINLY STILL CAPABLE OF DOING CERTAIN THINGS, PEOPLE TELL ME HE'S NOT REALLY ENGAGING IN ANY STRATEGIC DISCUSSIONS ANY LONGER WITH EITHER OF THE MANAGEMENTS OF THESE COMPANIES. HE ALSO HAD THE INTERESTING – OR, NOT INTERESTING, BUT YOU HAVE A SCENARIO UNDER WHICH PHILIPPE DEMONDAY IS HIS HEALTHCARE PROXY. SO YOU'VE GOT THE CEO OF VIACOM BEING THE HEALTHCARE PROXY FOR THE CHAIRMAN. AND THAT'S SOMEWHAT ODD. NOT TO MENTION, OF COURSE, MR. REDSTONE'S PAY FOR THE LAST YEAR. IT HAS BEEN RECENTLY LOWERED, BUT WAS FAIRLY HIGH FOR AGAIN, AN EXECUTIVE CHAIR THAT WAS NOT PARTICULARLY INVOLVED ANY LONGER AND CERTAINLY NOT EVEN DAY-TO-DAY, BUT BIGGER DECISIONS. ALL THAT BEING SAID, WHEN IT COMES TO CBS AND VIACOM, I KNOW THE SHARES MAY BE UP ON THIS NEWS, BUT HE STILL REMAINS THE CONTROLLING SHAREHOLDER THROUGH OF COURSE NATIONAL AMUSEMENTS AND HIS CONTROL OF THAT COMPANY. SO IT STILL REMAINS I THINK HARD TO IMAGINE THAT ANY SIGNIFICANT CHANGES, STRATEGIC CHANGES CERTAINLY, IN WHAT IS WE KNOW A VERY QUICKLY CHANGING MEDIA LANDSCAPE, WILL TAKE PLACE, GIVEN MR. REDSTONE IS STILL IN CONTROL OF BOTH COMPANIES. BUT AGAIN, THE BOARD, KELLY, MEETING TOMORROW, EXPECTED TO NAME THE REPLACEMENT FOR MR. REDSTONE AS CHAIR OF VIACOM AS WE HAD ALREADY BEEN REPORTING AND YOU'VE BEEN DISCUSSING FOR SOME TIME LESLIE MOONVES STEPPING UP TO BECOME EXECUTIVE CHAIR OF CBS AFTER MR. REDSTONE'S RESIGNATION YESTERDAY. BACK OVER TO YOU.

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