Grey, who was speaking to a gathering of media and technology execs, said Par had considered two options when Cruise's producing pact came up for renewal.

The first was to "reduce the capital we were putting in so dramatically that it wouldn't have made sense for Tom to keep it," Grey said. Such a readjustment "would've changed the ceiling for all top talent deals."

The second option was not to reach an agreement. When it became clear, in late August, that the two parties would choose door No. 2, Redstone spilled the beans.

"Was it as elegant as I would've wanted it to be? No. Was it more personal? Yes," Grey said. "Sumner Redstone is Sumner Redstone. He's a maverick.

"Tom Cruise is my friend — my showbiz friend — and he is an extraordinary actor, and he will be wildly successful in the future," Grey said. "However, the economics have to make sense. You have to get value for the capital you're spending."

That's a good deal more than he's ever shared publicly about the incident, having until now offered only a sound-blip about how Paramount "should be defined by our pictures, not by our process." Clearly, some distance from the messy events—not to mention having survived the summer movie season with his neck intact—has freed Grey up to say what really was expressed in all those hushed tête-à-têtes, midnight board meetings, and countless paper-airplane-messages reading, "Let's shitcan that overpaid Martian!" that came sailing out from Redstone's office in the tense days leading up to the parting of the ways of the two longtime "showbiz friends."

• Tom toasted, Viacom roasted [Variety]

"I don't think there's anyone in this room today who feels Tom was treated fairly," News Corp. President Peter Chernin told a crowd that included media and entertainment bigs like Rupert Murdoch, Edgar Bronfman Jr., Doug Morris, Harvey Weinstein, Ahmet Ertegun and John Sykes. "There's no doubt in my mind that Tom's continued success will haunt Viacom for years to come."

Pause. "But enough about Tom Cruise," said Chernin, firing up the rotisserie. "We're here to talk about Tom Freston, and Tom Freston is an a-hole. ... How can you roast someone who's already toast?

"I can only imagine how tough it must have been for Tom to be screwed over by a guy [Redstone] so old that he had to take a little blue pill to do it."

Making note of Freston's corporate rival Les Moonves (who made nice with Freston at the lunch), Chernin added that MTV, the network Freston founded, "now officially stands for 'Moonves Takes Viacom.'"

Whoever writes Chernin's material, a tip of the hat: sounds like he killed. (By contrast, we don't know how Stephen Colbert's Spongebob Squarepants/cheese grater joke went over, but on paper...yeesh.) And while we have no doubt that Les Moonves will have his revenge—we all know he can't resist a good, public flogging—for now, he'll have to put the exact wording and venue of his inevitable verbal takedown on the backburner, and return to his regularly scheduled duties of applying massage oils to the Stegosaurus-like ridges of Redstone's back whilst whispering Iagoesque consultations into his corporate overlord's ear.

• Axed exec the roast of the town [NY Daily News]

Viacom chairman Sumner Redstone says he had originally offered Tom Freston the job of sole CEO of Viacom — before it split — but Freston declined.

Redstone asked Leslie Moonves. "Naturally, being Les, he grabbed it. Then Tom came back and said he wanted it and that created problems," Redstone said in an interview with Charlie Rose broadcast on PBS Wednesday.

The rest is history. Viacom split, with Freston and Moonves each getting their own company. Redstone fired Freston, his colleague of 20 years, last month.

Indeed, it's all history now. Freston was carried out of Viacom's headquarters on his shield by his adoring throng of ex-employees, leaving him $60 million to blow on his soul-searching trip to Burma. And as for Moonves, well, Redstone will learn the consequence of backing his second CEO choice when he awakens in the middle of the night, his attempted scream swallowed by the pillow being pressed against his face, and hears Moonves' unmistakable voice gently cooing, "It's your time, old man. Just let go."

• Sumner speaking out [Variety]
• Previously: Sumner Redstone Displeased By Moonves-Freston Slap-Fight [Defamer]

Just a little while ago, readers of our differently coasted siblings at Gawker sent in reports of Tom Freston's final exit from Viacom's NY headquarters, in which the recently dismissed president and CEO of the company began his head-clearing hiatus from corporate life with a touching send-off from the minions lamenting the sudden end of his benevolent reign:

"A ton of MTV Networks/Viacom employees filled the lobby to can't move-standing room only as Tom Freston left the building on his last day. There was a standing ovation, and cheering as he walked through the mobs of people saying goodbye."

"...at least a thousand employees were down in the lobby cheering him on as tears rolled down his eyes..."

Broadcasting & Cable has also just posted an account of the lobby-jamming love-in on behalf of the Viacommies' fallen boss:

With Freston slated to exit Viacom's Manhattan headquarters for good at 4 p.m. Thursday, employees poured out of their offices and cubes to fill the lobby and the hallways, spilling out into Times Square outside. As Freston exited an elevator, the crown started clapping and cheering, forcing him to push his way out to a car waiting on the street. "It's was a pretty big security problem," says one Viacom employee at the rally which consisted of more than 1,000 employees.

In order to get the word out that a rally would occur, emails and text messages shot throughout the building. "It was organized in like 15 minutes," said one employee. "They [the employees] were chanting his name. He stopped, talked to a few people, got lots of hugs."

'The energy of the moment was unbelievable," said another MTV staffer after witnessing the event. "People were weeping, screaming. I've never experienced anything like that at the workplace."

Philippe Dauman was absent, en route to Los Angeles to make an appearance on the Paramount lot. His sidekick, new chief administrative officer Tom Dooley, was in the lobby in the middle of the crowd.

Dooley was lucky to make it out of there alive; while the crowd was assembled to celebrate their leader, we imagine that it wouldn't have been too difficult for someone to channel the mob's positive energy into a destructive force that would tear the nearest Freston successor limb from limb, smear his blood across their tear-strewn faces, and chant "We want Sumner!" with enough power to shake the building all the way to its highest floors. You can be sure that once Redstone gets the news about today's demonstration of fealty to Freston, he'll have his security detail digging the moat around his executive castle a few feet deeper to help repel a likely attack from his pitchfork-wielding corporate peasants.

[Photo: Broadcasting & Cable]

• Tom Freston Has Left the Building [Gawker]
• Viacom Staffers Stage Rally for Freston [B & C]
• Previously: Tom Freston To Take Some Time To Figure His Shit Out [Defamer]

"I've got to take a beat and figure out life after the 20-hour workday," said Freston, who will probably leave the company with a severance package worth $60 million. "You're like an addict to this fast-paced life and you don't know it." [...]

"I intend to take a prolonged trip to Asia and get back to my roots, to clear my head," he said. "I've only had two weeks off in a row once in the last 25 years. That life is over for now."

The globetrotting Freston surely knows that there is perhaps no better place for evaluating one's options than at a Bangkok sex show, where one can be lulled into an almost meditative state of contemplation by the combination of some really kick-ass hash and the gentle thoook! click...click click click of ping pong balls as they're fired from a performer's vagina and land on the hard surface of the stage. It's in unexpectedly tranquil moments like these that all crucial life decision are successfully made.

• Opportunity Already Knocks [LAT]
• Previously: Sumner Redstone, The Crying Executioner [Defamer]

THR: Tell me about the events leading up to (Tuesday's) announcements. Redstone: I didn't sleep one minute last night, with everything going on and worrying about Tom Freston.

THR: What did you say to him?
Redstone: I was almost crying. I met with him at my house right after the board voted at about 5 p.m. Sunday night to do what they wanted to do. Tom was at my house at about 6 p.m., and it was not an easy discussion. Tom said he loved me and loved the company. I expressed my great affection for him and talked about how our friendship would prevail over what took place. He's a great guy.

After a devastated Redstone slowly withdrew his blade from his cherished colleague's back and wiped away a rivulet of tear-dust leaking from the corner of a reddening eye, he propped Freston's lifeless form in a nearby chair, poured them both a glass of his finest Scotch, and offered a moving toast to the future of their friendship, which could now continue unencumbered by messy business matters. So moved was Redstone by this touching moment that he couldn't even bring himself to watch as a pair of minions rolled up Freston in a beautiful Oriental rug and placed him in the trunk of the Bentley in which the "great guy" would be ceremonially immolated, nor would he participate in the marshmallow roast that traditonally accompanied an freshly slain executive's funeral pyre.

• Redstone talks about reasons he tapped Dauman [THR]
• Previously: Tom Freston Out At Viacom As Sumner Redstone Claims Another Victim [Defamer]

Grey's e-mail, in which he succinctly invites his fellow employees to wish Freston godspeed to wherever his new, non-Viacom-related wanderings take him, follows after the jump:

From: [redacted]
To: Paramount_MotionPicture_All
Subject: A MESSAGE FROM BRAD GREY
09/05/2006 01:20 PM

By now you are all aware that today Tom Freston has resigned as CEO of our parent company, Viacom. Philippe Dauman has been named as Viacom's new Chief Executive Officer and President.

As a Viacom Board Member, Philippe has been a strong supporter of Paramount and provided invaluable guidance during our acquisition of DreamWorks.

Additionally, Viacom Board Member, Tom Dooley, has been named to the new role of Senior Executive Vice President and Chief Administrative Officer. We salute both Philippe and Tom in taking on these important roles at Viacom and look forward to this new chapter at the company. Philippe and Tom have a great knowledge of our business, and I know they will be terrific leaders.

My friend, Tom Freston, is an extraordinary executive. Tom leaves behind a legacy of innovation, leadership, globalism, and a dedication to audiences that we will all learn from for years to come. I know you join me in wishing him all the best.

As Paramount transforms its business, by creating great entertainment and working with the most exciting filmmakers and talent, we will together continue to take this studio into even greater success in our future.

Brad

• Previously: Tom Freston Out At Viacom As Sumner Redtsone Claims Another Victim [Defamer]

Disappointed that absorbing Tom Cruise's lifeforce was not sufficient in restoring his rapidly desiccating, centuries-old human shell to a sufficiently vital state, immortal Viacom executive vampire Sumner Redstone has also drained president and CEO Tom Freston of his essence, announcing this morning in a company-wide e-mail that he's cast aside Freston's spent, fleshy husk and replaced him with a pair of new minions, who will be allowed to ripen a bit before suffering the same soul-gobbling fate:

——-Original Message——-
From: Redstone, Sumner
Sent: Tue 9/5/2006 7:31 AM
Subject: Message from Sumner
Dear Colleagues:

Today we announced that Philippe Dauman and Tom Dooley are rejoining Viacom. As many of you know, they are both long-time former senior executives and current Board members who have served as Deputy Chairmen and have been my most trusted advisors at Viacom through some of the most significant events in our history. Philippe has been appointed President and Chief Executive Officer and Tom has been named to the new role of Senior Executive Vice President and Chief Administrative Officer.

We also announced that Tom Freston has resigned his positions with the Company. Tom has been a friend and colleague for many years and a driving force at MTV Networks from its inception. We will always be grateful to Tom for his many contributions to Viacom over the past 20 years, and wish him the best of luck in his future endeavors. With the support of our exceptional employees, Tom built MTV Networks into an unmatched power in the entertainment industry, an achievement that can never be diminished and will not be forgotten.

And somewhere deep within his stronghold at sister company CBS Corp., Les Moonves takes a greedy bite of a blueberry muffin, throws back his well-coiffed head, and unleashes a celebratory cackle, pleased that all is proceeding according to his nefarious plans.

The rest of Redstone's e-mail, heavy on the up-with-Viacom rhetoric and light on the reasons for Freston's exit, is after the jump.

But now, we must look ahead to the future. In the rapidly evolving worldwide digital marketplace, Viacom has a tremendous opportunity to become the leading creator of entertainment content on television, in film and on the internet. Many of you have worked with Philippe, so you know that he is the perfect choice to lead our company into this new era. He has the leadership skills, operational expertise, industry knowledge and judgment to take us to new heights and ensure that we reach our full potential in the years ahead. The Board and I have great confidence in Philippe and we know that, together with Tom, who has outstanding financial and management skills and has had an association with Viacom spanning more than 25 years, we will have a leadership team that is unbeatable.

I have worked closely with Philippe and Tom for over 20 years, and in addition to their current Board service, both men previously served in a broad range of senior management roles at Viacom. I am proud of our past accomplishments as a team during a period that was the most eventful and successful in Viacom's history. Additionally, apart from Viacom, they have worked together the last six years as the principals of DND Capital Partners, and have significant experience in analyzing the evolving media space through their involvement in venture capital and private equity financing.

Philippe and Tom share my tremendous passion for Viacom and its people, and for all our great brands and properties. Their complementary skills, broad media industry expertise and ability to identify unique opportunities will enable Viacom to execute successfully on our strategy.

You can find additional details on today's announcement on Viacom.com. We also encourage you to listen via web cast to the conference call scheduled for 9:00 am ET today.

Thank you for your continued hard work and commitment to Viacom.

Regards,

Sumner

[Photo: Getty Images]

• Viacom Names Philippe Dauman President and CEO, Succeeding Tom Freston [Viacom.com]
• Freston departs Viacom [THR]

People close to Viacom say the situation is "bizarre," especially given that both companies share the same chairman and controlling shareholder, Sumner Redstone.These people chalk up Moonves' motivation to his competitive nature as well as the actor-turned-mogul's well-known desire to run Paramount - which was put under Freston's control in 2004.

"It's a little surprising because it's gotten a little edgy," said one media executive who is close to both Freston and Moonves. He described the recent level of tension as "DEFCON 3."

Another associate of both men said, "It's ugly. But you never hear Tom taking shots at Les."

The notoriously laid-back Freston might be able to retreat into a downward-facing dog and ignore Moonves' antics now, but eventually his CBS rival will elevate the feud to Defcon 2 to elicit some form of retaliation. We bet that Freston endures no more than a week of heightened aggression before he's forced to fight back, quickly tiring of daily deliveries of picnic baskets full of dog excrement that bursts into flame when opened, or the November sweeps ads during Survivor in which Moonves will spend 30 seconds declaring his intentions to add Kathy Freston to his harem of corporate war brides.

• IT'S SHOWDOWN [NY Post]
• Previously: Sumner Redstone Displeased By Moonves-Freston Slap-Fight [Defamer]

Insiders say that nasty stories have been leaked to reporters about Viacom chief Tom Freston and CBS boss Les Moonves - and that staffs of each man believe the stories are being pitched by the rival camp.

When the chief flack for one chairman called the flack for the other and accused him of spreading lies, the spokesman allegedly confessed, "You're right. I work for a deeply insecure man who made me do this."

News of the dirty trickery soon reached Redstone, who supposedly called "a come-to-Jesus meeting" where he told both Freston and Moonves to knock off the hostilities.

Spokespersons for both CBS and Viacom deny any such meeting took place. But an insider confirmed, "Somebody malicious, who would like the two guys to be fighting against each other, is trying to spread lies." [...]

Redstone doesn't seem to mind the rivalry. "They are both fierce competitors. And that doesn't bother me," he told Newsweek last month. "They both want to win . . . I like winners . . . They have the right to compete with each other in any area of their businesses, as long as they don't do something outside the law that puts the other one out of business."

That kind of amazing foresight is an excellent example of how Redstone has managed to maintain his iron-fisted (or more precisely, a brittle fist inside an iron gauntlet) control over his corporate empire these last 215 years. A lesser executive might have neglected to officially prohibit his underlings from the commission of illegal acts, leaving Moonves a crucial loophole permitting him to finally order Freston's murder.

• DIRTY TRICKS BY VIACOM-RADES [Page Six]
• Tom Freston Might Have Signed His Own Death Certificate [Defamer]

March 17, 2006
Paramount Employees
Tom Freston
DreamWorks' Library Sale

I wanted to make sure you saw the attached release, announcing Viacom s sale of the DreamWorks Library to Soros and Dune for $900 million.

This is an important announcement for a few reasons - it significantly reduces the cost of the DreamWorks acquisition for us, without losing any of the incredible benefits of the acquisition for Paramount. After this transaction closes, which we expect by the end of next month, our net purchase price for DreamWorks will be about $600 million. This sale also marks the final phase of the acquisition - now that the difficult work of the integration is compl ete and the library is sold, we can focus solely on our most important work - attracting the best talent and projects to the studio and making and marketing great movies. And, finally, it enables is to deliver on the promise we made to Wall Street and our shareholders about the type of acquisitions we'll make.

Now that we're through the acquisition and all the change associated with it, Brad and I could not feel better about the unified company. It s very exciting to see the incredible people, energy and creativity from DreamWorks combine with our strong Paramount team. And we are about to enter the spring and summer with a very promising and exciting slate of new films: MI3, Over the Hedge, Nacho Libre, and World Trade Center.

Thanks to all of you for continuing your hard work and executing on our plan to make this studio great. And, I'd like to extend congratulations to everyone who worked on the library sale - it is an important and good deal for us. Please know that I couldn't feel more excited about or committed to the new Paramount and its leadership, and I truly feel that 2006 will be remembered as the year that our outstanding team started us on a new, bright path.

• Soros Group Said to Be Near Deal for DreamWorks Library [NY Times]