Viacom CEO Philippe Dauman said Tuesday that Viacom is pursuing a deal to farm out a minority stake in Paramount Pictures.
Dauman said Viacom had been approached by potential partners looking to make a strategic investment in Paramount. He added that Viacom would maintain its control of the film studio after the deal.
Viacom's stock was halted for volatility on the news and reopened up 5 percent. Shares of Viacom climbed as much as 6 percent.
Mario Gabelli, one of Viacom's largest shareholders, told CNBC on Tuesday that Dauman should separate Paramount into a joint venture with a partner like Alibaba, buy a content producer like AMC and create a digital platform like Netflix.