Viacom says CEO Dauman to resign post immediately; Dooley steps in

By Jessica Toonkel

NEW YORK (Reuters) - Viacom Inc (VIAB.O) said on Saturday that Chief Executive Philippe Dauman will resign immediately, marking a victory for the family of controlling shareholder Sumner Redstone in the battle for the $40 billion (£30.5 billion) media empire.

The settlement with Dauman also ends the legal fight between members of the Viacom board and Redstone's National Amusements Inc, the privately held company that holds 80 percent of the voting shares of Viacom and CBS Corp (CBS.N).

Under terms of the settlement, Dauman, 62, will be replaced as chief executive by his longtime right-hand man, Viacom Chief Operating Officer Thomas Dooley, who will be interim CEO until Sept. 30, the end of Viacom’s fiscal year. Viacom said the board, working with Dooley, will make a decision on succession plans by then.

Dauman will stay on as non-executive chairman through Sept. 13 and be allowed to present his plan to sell a minority stake in Paramount Pictures to the Viacom board. Dauman will receive about $72 million under the agreement, according to sources familiar with the situation.

(Reporting by Jessica Toonkel; Editing by Dan Grebler and Terry Wade)