Confusion Over Viacom's Plans To Sell Paramount Stake Continues

Viacom, Inc. (NASDAQ: VIAB) has been actively looking for a buyer for its stake in Paramount. After all, the move received the blessing of the company's controlling shareholder, Sumner Redstone.

Or so, Viacom's CEO Philippe Dauman thought. It turns out, Dauman misheard Redstone's desires to support a sale of Paramount as the 92-year old mogul has trouble speaking.

Related Link: Sumner Redstone Doesn't Want To Sell A Stake In Paramount

Dauman went on to confirm he has no intention of selling the stake in a conversation with Paramount's chief Brady Grey.

The New York Post reported on Wednesday that potential bidders for Viacom's Paramount stake are all "scratching their heads," as Viacom said it has received three dozen expressions of interest.

"The sale is on track and will be completed by the end of June," a spokesman told the New York Post.

Hence the ongoing confusion among investors who are unsure of Viacom's plans. It is also uncertain how large of a stake Viacom is looking to unload. The studio is valued at $5 billion to $6 billion, the New York Post added. However, one report places the studio's valuation as high as $10 billion.

"The sale is a ruse to distract people until Sumner [Redstone] dies," one source close to the process told the New York Post.

Image Credit: Public Domain