Fighting to hang on to his professional future and an investment-grade credit rating, besieged Viacom Chief Executive Philippe Dauman invited investors to examine the hidden value in the company’s under-appreciated assets.
Dauman, speaking at an investor conference on Monday, boasted to investors: “You’re getting a lot of things for free when you buy our shares.”
Viacom B shares have fallen 43 percent over the past 12 months.
He drew special attention to Epix, saying the premium TV and movie network would soon be consolidated on Viacom’s books and give shareholders more visibility into its success. Epix is co-owned by Lionsgate and MGM.
The embattled CEO also touted the “premium-priced” Paramount Pictures unit, of which Viacom is selling a minority stake. An agreement is expected to close by the end of June.
Dauman — speaking at the Deutsche Bank media conference in Palm Beach, Fla. — hinted that any potential partner would offer wider international and digital benefits to the rest of the company.
The buyer hasn’t been identified, although The Post has reported that both Chinese online giant Alibaba and China-based theater chain Dalian Wanda, have been in talks with Viacom, The Post reported.
Despite a disappointing run of late at the studio, Dauman stressed Paramount’s value as an asset with a great library of movies that is constantly replenishing with “high-end films.” Calling it a “crown jewel,” he noted the company was looking to wring higher profits from merchandising, tours and other initiatives, said Dauman.
The film unit, which houses such successful franchises as “The Godfather” and “Transformers,” recorded a $146 million operating loss in the quarter ended Dec. 31.
The proceeds from a sale are expected to be used to pay off a $350 million in debt maturing in April.
On the financial front, he said leverage ratios are being recalculated, stressing a commitment “to an investment grade for those of you who are bond holders.” said the embattled Dauman. Viacom is clinging to an S&P investment grade rating of BBB-.
The stock gained on his remarks, rising above $40 for the first time in weeks. Shares gained, 3.2 percent, or $1.25, to $40.07.
