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Viacom (Class B) (VIA.B ): Reiterates 3 STARS (hold)
Analyst: Tuna Amobi, CPA, CFA

We view the appointment of Brad Grey as Chairman/CEO of Paramount Pictures, replacing Sherry Lansing, as consistent with the studio's turnaround strategy. While Grey has never run a major studio, we think he brings a solid entertainment industry track record, with notable TV production hits like The Sopranos, and vital relationships with "A-list" Hollywood talent. While Grey should lead efforts to revamp theatrical production and marketing, we also expect Paramount to increasingly leverage sister MTV's younger-skewing demo, and like other majors, aggressively tap into the DVD market.
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