Viacom hit by chief's departure

Mr Freston was chief executive for nine months

Shares in media group Viacom have fallen sharply following the sacking of its chief executive Tom Freston.

Viacom, which owns MTV Networks and Paramount Studios, saw its shares tumble 5.6% in response to the move.

The decision comes just two weeks after Viacom chairman Sumner Redstone said that Paramount was severing ties with actor Tom Cruise's production company.

Analysts said the removal of Mr Freston was an attempt by Mr Redstone to take a more operational role at Viacom.

This is "a development that is not likely to be warmly received in the investment community," said Merrill Lynch analyst Jessica Reif Cohen, who downgraded her recommendation on the stock to "neutral" from "buy".

Lacking communication

Viacom chairman Sumner Redstone wanted faster progress

Mr Redstone is believed to have been disappointed by Viacom's failure to achieve impressive growth for its internet operations.

"The board felt not enough was being done," said Mr Redstone.

"We were not moving ahead as entrepreneurially and as aggressively as we should.

"The communication with Wall Street had been deficient."

Existing board member Philippe Dauman has been appointed chief executive of Viacom while Thomas Dooley, also a board member, will become chief administrative officer.

Both Mr Dauman and Mr Dooley are seen as allies of Mr Redstone.