MAM
Mel Karmazin out of Viacom; Redstone sets forth succession plan
MUMBAI: Mel Karmazin, president and COO of media major Viacom, is out. That brief line about sums up the manner in which the announcement of Karmazin’s departure from a company he has served with distinction these last few years was made.
A company release issued a few hours ago states, “The board of directors of Viacom Inc. today announced that (MTV bossman) Tom Freston and (CBS chief) Leslie Moonves have been appointed co-presidents and co-chief operating officers, effective immediately. Freston and Moonves succeed Mel Karmazin, who has resigned.”
Karmazin’s departure follows years of tension between him and chairman and CEO Sumner Redstone, two very strong-willed individuals, who, however, managed to keep their personal differences at bay while driving the company forward.
Karmazin became president and COO in May, 2000, when Viacom bought over CBS. It was in 1997 that Karmazin took charge of CBS by merging his company Infinity Radio into CBS.
Karmazin’s exit from Viacom is the culmination of a series of well calibrated moves that Redstone has made in the last two months that give more than a hint that there is a clear succession plan already in place.
The Heir Apparent
And the heir to the Viacom legacy that Redstone has made into one of America’s biggest media companies is more than likely going to be his daughter, Shari Redstone, 50.
The statement issued by Viacom also clearly indicates that such a plan is in place though no names were thrown out. In announcing the change, Viacom described it as “part of a corporate succession plan, which will provide for the orderly transition to the next generation of senior management.” The statement also goes on to add that Redstone will be relinquishing his role as CEO within three years.
If, as expected Ms Redstone takes over at Viacom, she will inherit a media behemoth that owns, among other things, CBS, MTV, Nickelodeon, Paramount Pictures, and Simon & Schuster publishing.
Until now, she has focused most of her attention on running National Amusements, her family’s privately held movie theater chain based in Boston. However, she has said she plans to spend a third of her time at Viacom starting in the fall.
“It was always my intention that when the kids were grown, I would spend more time and play a more significant role at Viacom,” Ms Redstone told The New York Times in a recent interview. “Next year is the year I intend to start attending meetings more regularly.”
‘India hand’ Tom Freston now COO
Freston and Moonves, meanwhile, will jointly oversee all of the operations of Viacom. In addition to MTV Networks, Freston will be responsible for overseeing the operations of Showtime, BET, Paramount Parks, Simon & Schuster and the motion picture operations of Paramount Pictures. Moonves on the other hand will have charge over Viacom’s broadcast television businesses, as well as Paramount TV, Infinity Broadcasting and Viacom Outdoor.
Freston for one is an old India hand. Not only has he been here quite a few times, he has lived in Delhi for seven-eight years earlier on.
As chairman and CEO of MTV Networks, Freston is responsible for its 96 owned and operated television programming networks, among them MTV: Music Television, MTV2, VH1, mtvU, Nickelodeon/Nick at Nite, Comedy Central, Noggin, TV Land, Spike TV, CMT, and The Digital Suite, which consists of thirteen music and children’s programming services, as well as MTV Networks portfolio of leading Internet properties.
Freston has held a succession of positions with MTV Networks, culminating in his appointment in 1987 as CEO. Since then, he has successfully driven MTV Networks into new markets both domestically and overseas. In addition, MTV has successfully extended its brands into film, books, magazines, toys and a host of other consumer products.
DISNEY KARMAZIN’S NEXT DESTINATION?
And what of Karmazin? The official statement quotes him as saying: “After more than 20 years with the company, for personal and professional reasons, I have decided to leave Viacom and pursue other challenges. Viacom is performing exceptionally well with leadership positions in all of its businesses. The company’s very talented management team will ensure its continued success.
The “other challenge” could well turn out to be be as the next chief executive of Disney, whose board is weighing succession plans for embattled CEO Michael Eisner.
Wherever 60-year-old Karmazin is headed next remains open to speculation but one thing is clear. He leaves Viacom a very rich man.
According to the terms of his contract signed last year, Karmazin reportedly stands to get close to $25 million in salary, deferred compensation and bonus. Additionally, Karmazin holds nearly 11 million shares in Viacom, including options, which are worth more than $400 million based on recent share prices.
When you plan to apply for a personal loan, one of the first things that comes into focus is your credit score. Many people hear about it but may not fully understand how much influence it actually has on the application process. In simple terms, a credit score reflects how responsibly you have managed credit in the past.
It acts as a snapshot of your financial behaviour over time. This score plays an essential role in deciding personal loan eligibility and how smoothly the application moves forward. Being aware of how your credit score impacts the process can help you prepare well before applying for a personal loan.
Below are a few ways your credit score can influence personal loan approval.
1. It plays a key role in personal loan eligibility
Your credit score is often one of the primary indicators used to evaluate personal loan eligibility. A strong score of usually 750 and above reflects a history of paying dues on time and managing credit responsibly. This financial track record helps show reliability when applying for a personal loan.
On the other hand, a lower credit score might indicate missed payments or higher credit usage in the past. Because of this, the credit score becomes an important starting point in assessing whether an applicant meets the basic eligibility conditions.
2. It reflects your repayment behaviour
Your credit score is built from your previous financial behaviour, particularly how consistently you repay borrowed money. Timely payments on credit cards, loans, and other credit facilities contribute positively to the score.
When your repayment record shows consistency, it suggests that you manage financial commitments in a responsible manner. This positive history can support your personal loan eligibility and make the loan application procedure smoother.
3. It may influence loan terms
A good credit score does not just help with loan eligibility; it can also influence the overall terms linked with a personal loan. Applicants with stronger credit profiles might find that the available options are more flexible.
Since the credit score reflects financial reliability, it can shape how the loan structure is offered, including aspects such as repayment tenure or borrowing limits. Maintaining a healthy credit score, therefore, plays a vital role in shaping the borrowing experience.
4. It affects the speed of the approval process
Applications supported by a strong credit score often move through the process more smoothly. When your credit history clearly shows responsible credit usage, fewer clarifications may be required during the evaluation stage.
This can help speed up the approval timeline for a personal loan. In contrast, if the credit history contains irregularities or gaps, the review process may take longer, as additional checks may be required.
5. It encourages responsible financial habits
One of the most valuable aspects of a credit score is that it encourages responsible financial behaviour. Being aware that repayment history directly influences personal loan eligibility often encourages individuals to manage their credit more responsibly.
Simple habits such as paying dues on time, avoiding excessive borrowing, and maintaining balanced credit usage can gradually improve the score. Over time, these habits build a strong financial profile that supports future borrowing needs.
Ending note
A credit score may seem like just a number, but it carries significant weight when applying for a personal loan. It reflects your financial discipline, repayment history, and overall credit management.
By maintaining good credit habits, you not only strengthen your personal loan eligibility but also make the borrowing process smoother and more predictable. In the long run, a healthy credit score becomes more than a requirement; it becomes a reflection of consistent and thoughtful financial management.
