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Viacom Takeover Forces Out Paramount’s Jaffe

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Midway through his six-year contract, Paramount Communications Inc. President Stanley Jaffe got word Monday that there will not be a role for him after Viacom completes its acquisition.

According to a well-placed source, Jaffe was informed of the decision by Paramount Chairman Martin S. Davis, who was the only Paramount executive to attend a meeting of Viacom executives in Vail, Colo., last week, where Blockbuster executives were also in attendance.

The ouster of Jaffe was widely expected because Viacom already has a strong No. 2 man to manage Paramount in Frank Biondi. Jaffe declined to comment on his status Monday. One report has valued his exit package in stock and stock options at about $60 million.

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Jaffe’s plans are undisclosed. Sherry Lansing, his former producing partner, is telling friends that she expects to remain as Paramount Pictures chief under the new regime. Earlier speculation had Jaffe, a sports fan, trying to buy basketball’s New York Knicks and ice hockey’s New York Rangers from Paramount, but the company recently said those assets are not for sale. Some sources say Jaffe will probably return to producing.

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