Advertisement

Viacom Taps Time Warner Exec for Top Deal-Making Post

Share
TIMES STAFF WRITER

In one of its most significant hires since buying Paramount Communications, Viacom Inc. named Time Warner executive Thomas McGrath on Wednesday to a top deal-making position in the group that oversees the company’s movie studio, television operations and other entertainment units.

McGrath was named to the newly created post of executive vice president of the Viacom Entertainment Group, in a move that had been rumored in entertainment circles since last month. He reports directly to Viacom Entertainment Chairman Jonathan L. Dolgen and will be based at the Paramount Pictures lot in Hollywood.

McGrath, 39, most recently was president of Time Warner International Broadcasting, and was also a senior vice president of business development for Time Warner Inc.’s Home Box Office pay cable station. His principal job was setting up television deals overseas.

Advertisement

In separate interviews, Dolgen and McGrath emphasized that McGrath’s new job will not involve operations, but rather will emphasize the planning and implementation of strategic deals. McGrath added that he will not be involved in the individual film deals that studio executives traditionally negotiate.

Sources suggested that McGrath’s most immediate task will be helping Viacom divest some assets, notably its 50% stake in the 350-screen Cineamerica chain of theaters--known for its Mann Theaters--and also its Famous Music publishing unit.

McGrath is also likely to get involved in helping Paramount set up independently financed production deals at the studio.

Dolgen said he hired McGrath largely because of McGrath’s “great transactional skills,” noting that it’s hard to find people with good deal-making abilities at a time when industry transactions are becoming increasingly sophisticated.

McGrath has known Dolgen for years, dating back to their days at Columbia Pictures with current Viacom President Frank Biondi.

McGrath’s highest-profile job in entertainment was as president of Norman Lear’s Act III Communications from 1986 to 1990, where he helped build the company into a diversified media firm with movie theaters, television stations and magazines. He also helped get the company involved in such films as “Stand by Me,” “The Princess Bride” and “Fried Green Tomatoes.”

Advertisement
Advertisement