Viacom and controlling shareholder Sumner Redstone have come to an agreement on terms of a settlement that would result in the departure of Chief Executive Philippe Dauman, two sources familiar with the situation told Reuters on Thursday.
An announcement is expected to come Thursday night, sources said.
The settlement would end the battle for control over Redstone's $40 billion empire that includes Viacom and CBS, and which has been a source of shareholder angst and months of uncertainty.
It would also conclude the legal battle between Dauman and Redstone in Massachusetts over the CEO's removal from National Amusements Inc, the privately held company that holds Redstone's Viacom and CBS Corp voting shares, as well as the trust that will determine the fate of both media companies when the 93-year-old dies or is deemed mentally incapacitated.
Under terms of the settlement, if finalized, Dauman, 62, will be replaced by Viacom Chief Operating Officer and his longtime right-hand man, Thomas Dooley, who will be interim CEO until Sept. 30, and then may stay on longer, according to the sources, who wished to remain anonymous because the discussions are confidential.
As part of the agreement, Dauman will stay on as executive chairman until Sept. 13 and be allowed to present his plan to sell a minority stake in Paramount Pictures to the Viacom board, the sources said. Dauman will receive about $72 million under the agreement, they said.